SOUTH SAN FRANCISCO, CALIFORNIA - MAY 09: A Rivian electric pickup truck sits in a parking lot at a Rivian service center on May 09, 2022 in South San Francisco, California. Shares of Rivian stock fell 13 percent after Ford, which currently owns as 11.4 percent stake in the electric car maker, is planning to sell 8 million of its 102 million shares. (Photo by Justin Sullivan/Getty Images)
In an effort to boost output, Rivian Automotive is reportedly relocating some of its manufacturing engineering staff to Illinois. The restructure, which is anticipated to be revealed soon, will necessitate the relocation of people employed in manufacturing engineering to central Illinois or the company’s headquarters in Irvine, California, a source familiar with the situation told the Wall Street Journal.
A representative for Rivian told Reuters that it would be advantageous for production to increase if the engineering and manufacturing teams were located closer to the Irvine, California headquarters and the facilities in Normal, Illinois. The representative would not disclose whether or not the company is transferring the teams, though.
At its facility in Normal, Illinois, Rivian produces the R1S SUV in addition to the R1T electric pickup truck. As it struggles with ongoing supply chain issues, the company predicted in February that production for 2023 may be lower than analysts’ expectations. Every vehicle the electric car manufacturer produces is a loss maker, and last year, it just barely missed meeting its 25,000 unit yearly production goal.
As interest rates increase and concerns about an impending recession grow, investors are allegedly concerned about declining demand for electric vehicles.
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