Home Features Is Rivian Next?

Is Rivian Next?

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Rivian appears to be on deck for the role of next EV company to be “retired” – in the sense intended by Phillip Dick in his novel, Do Androids Dream of Electric Sheep? The reference is to the ending (via laser tube) of electric “humans” – styled Andys in the novel, which became the basis for the Blade Runner movies.

Rivian, which makes electric vehicles, just announced it will retiring – so to speak – about 600 workers due to wilting demand for the vehicles it makes. More finely, anticipated wilting demand now that the $7,500 tax rebate that served as an “incentive” to get people to buy EVs has been retired by Donald Trump. There was a brief surge in EV sales over the past couple of months but that was a temporary thing, like steroid-inflated muscles on a bodybuilder. Once the steroids are out of the system, the muscles deflate. And so have EV sales, now that people are now longer being paid $7,500 to buy them.

Here’s is a memo written by Rivian CEO RJ Scaringe:

Hi Team,
I am writing to share a difficult update.
With the launch of R2 in front of us and the need to profitably scale our business, we have made the very difficult decision to make a number of structural adjustments to our teams. These changes result in a reduction in the size of our team by roughly 4.5%.
These are not changes that were made lightly. With the changing operating backdrop, we had to rethink how we are scaling our go-to-market functions. This news is challenging to hear, and the hard work and contributions of the team members who are leaving are greatly appreciated.
To ensure we move forward with clarity, I want to summarize the areas most impacted.
  • Streamlining the Customer Journey: To provide a seamless experience for our customers, we are integrating the Vehicle Operations workstreams into the Service organization to create fewer customer handoffs and clearer ownership. We are also integrating the Delivery and Mobile Operations into the Sales organization to ensure the purchase experience is as seamless as possible with a single touchpoint throughout the entire sales process and to delivery.
  • Elevating Our Marketing Efforts: Historically we have had multiple functions that collectively capture what would typically be housed in a single marketing organization. We have made the decision to form a single marketing organization, and while we recruit our first Chief Marketing Officer (CMO), I will be acting as Interim CMO. Our Marketing Experiences team, led by Denise Cherry, and the Creative Studio team, led by Matt Soldan, will both report directly to me for now.
These changes are being made to ensure we can deliver on our potential by scaling efficiently towards building a healthy and profitable business. I am incredibly confident in R2 and the hard work of our teams to deliver and ramp this incredible product.
Thanks again everyone.
RJ

Delicious, isn’t it?

Especially the choice of words used, such as “journey.” Why is it that so many modern corporations appear to think they are running a campfire circle and singing Kumbaya rather than a company? Well, because that’s what they want you to think they’re doing. It’s the feelings that matter, you see. Such as the feeling that you’re doing the right thing by driving an EV. Some actually believe this, too. We live in an era of enstupidation. One in which even people with college degrees – especially people with college degrees – actually do believe the “climate” is “changing” because people drive cars with engines rather than vehicles powered by batteries that generate even more C02 being made than engines do being run.

Others just want to look as if they believe this – and high-end, high-performance EVs that weigh close to 8,000 lbs. and go from zero to sixty in four seconds or less such as those made by Rivian are the perfect vehicles for doing that. They are both virtuous and elitist – these two attributes often go together – and that is essential in that very few affluent people want to be seen in a vehicle that just anyone can own. They want to be seen in a vehicle only the few can own – while at the same time feigning that they’re driving their $70k-plus device because – Kumbaya – they care about “climate change.”

This is the essence of the effronterous scam. If the “climate” truly were “changing” on account of people not driving EVs, then every effort would be made to mass-produce as many affordable EVs as possible and that would entail forgetting about getting to 60 in four seconds or less and instead figuring out how to make and sell them as cheaply as possible. The fact that EVs are – by and large – Elitist Vehicles – says all you need to know about “climate change.”

And now that the federal government isn’t offering these affluent virtue-signalers the “incentive” of other people’s money (who do you suppose pays for the tax rebates?) to buy a virtue-signaling vehicle that’s also a hassle to live with, fewer affluent virtue-signalers are buying them. Of course, there were only so many of them in the first place – and that buyer pool has largely dried up.

Scaringe tried to be positive about the state of things. The same is usually true when the oncologist tells you about your prospects for the next six months. Rivian is supposed to be on the cusp of unveiling a new device – the R2 (no D2) – that will supposedly have a starting price of only $45,000.

Does Scaringe have a clue that probably 80 percent of Americans are struggling to pay for food at this point? Of course he doesn’t. He himself is a multi-millionaire and such concerns are not his. To him – and pretty much the entire car industry’s senior management – A $45,000 vehicle is “cheap.” Which is true, sort of. Like a Snickers bar at the Dollar Store is for the rest of us.

They just don’t get.

But they’ll keep trying to give it to us, good and hard.

. . .

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41 COMMENTS

  1. You can add the German companies, Mercedes, BMW, Volkswagon and Porsche to the list of soon to be extinct marques. The German/EU elites have killed their economies by letting the Biden admin destroy Nordstream 2 and abandoning nuclear power…..things are dire over there and civil war is not out of the question…..very sad but as we all know, the so-called leaders of the western countries care not one whit for the desires of the taxpayers and citizens…..every election is rigged.

  2. Sitting here reading while sipping coffee from my David Knight mug and putting it down on my Eric Peters “Don’t be a clover” coaster, taking in gobbledygook corporate speak. These gems have their own sparkle – “structured adjustments,” “operating backdrop,” “go-to-market functions,” yes, Eric, everything these days is a “journey,” and the ever-present former employees that are now “team members.” RAH-RAH.

    “Move forward with clarity.” First, back up and clarify that curtain of crap with plain English.

  3. The saddest thing about all these start up electric vehicle companies.

    The wasted opportunities!

    All the wasted capital that could have started up real new car companies (or other firms for that matter, that would have made money). Ones that could have built cars and trucks with ENGINES rather than motors! We really do need new companies that make vehicles since the established ones will not change in good ways without real competition.

    It’s the regulatory climate (not just the US but worldwide) that insures that none of the new companies build cars with gas or diesel engines instead of electric. Frankly you have to be a dope to invest in vehicles right now.

    To be honest, the established car companies don’t see the electric startups as much of a threat to be honest. They probably aren’t wrong. They have been using the regulatory climate for decades to keep start ups from success. We don’t have a free economy and we haven’t for a very long time.

    It’s no wonder there hasn’t been a successful American car company startup since Chrysler in the 1920’s. It’s been a hundred years!! And no Tesla is not a successful startup. It doesn’t make money building vehicles.

    • “The wasted opportunities!
      All the wasted capital that could have started up real new car companies (or other firms for that matter, that would have made money).”

      This is what the Austrian school of economics aptly calls ‘malinvestment’.

      It is a feature of any centrally-planned economic system. Like those that prevail in today’s ‘West’.

      • The Austrian school also recognizes creative destruction, where someone more capable than a failed company can pick up the assets and put them to better use, like building cars that people want.

    • It does. They have opened up sales to other buyers (2023), but I haven’t seen any in the wild that aren’t Amazon’s. I only see them in nice weather, they vanish when it’s cold or super hot.

      • Not the Amazon trucks you don’t. Where I live, they’re out in force no matter the weather. I would think Amazon would be experts on the capabilities, or lack there/of, of Rivian trucks. What do they say? Because remember, every Amazon truck you see is one UPS truck you don’t see.

  4. I’ve always thought that the elites really aren’t on board with the whole climate change thing: I mean, there’s a Grand Canyon-sized gap between what they say and what they actually do. What’s more, they pooh-pooh the things that actually do reduce emissions of all pollutants (assuming CO2 is a pollutant, of course).

    For one thing, they’re pushing the whole Return To Office thing. As I’ve mentioned, the most effective way to reduce emissions is to Burn Less Fuel. Remote work/telework did just that, not only by keeping cars off the road, but allowing people to put fewer miles on their cars, thus reducing the need for oil changes, brake jobs, and new tires. (The tailpipe isn’t the only source of pollutants: Brake and tire dust is particularly nasty stuff). Plus, people’s cars lasted longer. (Cars have their greatest environmental impact when they’re built and when they’re junked.) Yet as soon as the “public health emergency” ended, companies threatened employees to go back to the office. I guess saving their real estate investments is more important than saving the planet, right? Plus, it’s a way to get rid of people without all the hassle and bad publicity of actually firing them, too!

    And another thing: They’re actually blocking the production of vehicles that actually have lower emissions: EU-spec diesels, small cars and trucks, Compressed Natural Gas (CNG) vehicles, and electric-dominant hybrid vehicles. Vehicles like the Diesel VW Golf/Jetta, Toyota Hilux, Honda Civic GX, and Chevy Volt that Burn Less Fuel and cost less than $50,000 (and in the case of the Toyota Hilux, less than $15,000). At those prices, people will adopt them en masse—What good is a “zero emissions” vehicle if it’s a niche product that only rich people can afford? The math doesn’t math on that.

    And speaking of which, we’d see a lot of motorcycles too. Motorcycles are a really fuel efficient means of transportation. But not just any motorcycles: I’m talking about practical, affordable, user-friendly motorcycles—not Hogs that cost
    more than some cars or crotch rockets that are do-it-yourself Dr. Kevorkian machines—I’m talking about bikes like the old school Honda and BMW bikes that were affordable and comfortable. But they and find one.

    And then there’s nuclear energy. Nuclear energy is the only energy source capable of producing energy at the levels required to sustain life as we know it without any emissions. And while there are issues of safety and nuclear waste, nuclear energy has killed no one in the United States, whereas there are towns in West Virginia, Kentucky, and Pennsylvania full of people with breathing disorders from coal mining and breathing in pollution from coal fired plants. What’s more, there are next generation reactors that are far safer and cleaner than today’s designs.

    All of these things are practical, effective, and relatively inexpensive ways to reduce emissions. Yet TPTB at best ignore them and at worst actively block them.

    You see, it’s not about controlling emissions, it’s about controlling YOU.

    I’ll start believing that CO2 emissions will cause us to fry the planet when I see the elites walking the walk instead of talking the talk here.

    • Hi Bryce,
      As far as the elites walking the walk I want to see all the “depopulation” advocates leading by example and publicly kill themselves, starting with that freak pervert Bill Gates.

    • Check out why files recent episode for many examples of how innovation in vehicle efficiency predictably leads to innovators ruin or final destination by gubmint.

      The owners want it this way apparently feeding on our bitching like maga hogs at the media slop trough did a year ago. You fools.

  5. That pesky free market. Where the only way to succeed is to offer a product or service people want or need at a price they can afford and are willing to pay.
    If you aren’t doing that, you’re looking for free (stolen) money.

  6. Hi team,

    Is Rivian next? God willing and the creek don’t rise, YES! 😎

    At this point, it’s a race to oblivion of the walking wounded – Rivian, Nissan, Volkswagen, et al.

    It may seem crass to bet on which one collapses into the ditch first. But EeeVee Fever was their delusion, not ours. Who would be foolish enough to bet a business on the promises of some nobody named ‘Joe Biden’ and 535 rum-soaked Congress Clowns?

    Meanwhile, I expect every morning to learn that VW has pulled the plug on ‘Scout Motors,’ a business that is obviously dooooomed.

  7. Driving through North Georgia on I-75 a few weeks ago, it was scary to see how much of the economy has reoriented towards the new Rivian plant in the state, funded with the $6+ billion dollar loan that The Biden Thing’s cabal arranged for the company on their way out the door.

    I saw multiple former carpet mills and furniture factories rededicated to building EV parts, including batteries in one facility right up against the interstate.

    In fact, the only carpet mill I saw was Shaw, owned by … Capo Gecko!

    Surely, there must be others.

  8. I don’t see them being around much longer I have only seen one on the road ever high price trash in the areas with rich people I see a lot of Tesla cars but no other electrical cars.

    And question to Eric if you see it would you right a article about buy a fixer up car as a way to get a good car on a budget it’s what I had to do feel lot of people don’t think of it or are afraid of trying to fix a car thanks.

    • Good topic. As boomer die off accelerates lotsa low mile hidden gems are emerging from storage. Looks like that gen kept spare cars for a future use. NOW.

  9. Eric, may I clarify?

    “Hi Team[bullshit, you’re the boss and the workers are peons] we have made the very difficult decision[more bs, you looked at a printout and realized you needed to put some folks on the chopping block]; changing operating backdrop[you thought you knew the market when it was nothing more than political gaslighting], we had to rethink how we are scaling our go-to-market functions[we screwed up from the start and we’re trying to cover it with childish marketing verbiage] team members who are leaving are greatly appreciated[a real steaming pile of Xcrement. You don’t give a damn about the employees; they’re merely billets of aluminum, all the same and interchangeable] Streamlining the Customer Journey[Journey? their vehicle has bricked in BFE and you’re talking about a “journey”?]: a seamless experience[what? you mean you didn’t use a ribbed condom?] fewer customer handoffs…with a single touchpoint throughout the entire sales process and to delivery[you mean I’m stuck having to talk to one and only one non-responsive ninny?] we can deliver on our potential by scaling efficiently towards building a healthy and profitable business[you’ve been losing money hand over fist from the get-go with no end in sight. Financially, Thelma and Louise are at the wheel] Our Marketing Experiences team, led by Denise Cherry[get ready for another Bud Light moment], and the Creative Studio team, led by Matt Soldan[Creative team? What, exactly are they creating? It sure ain’t profits. It sure ain’t saleable vehicles.]

    Now you see why I never made it in, what a former co-worker called it, The Land of Corporate Stupid.

        • Mark in BC,
          Thank you for clarifying the corporate jargon for me. This dufus Scaringe must have worked for Apple or Intel for a while before he was *given* his corporate gig at Rivian. I surprised he didn’t try to whiz bang his employees with references to Moore’s Law and a new innovation of product is coming soon in 18-month Cycle of Innovation. [Rivian is keeping its *core competencies*, the rest of you dolts and hit the road.]

    • “Streamlining the Customer Journey”

      Once their phone numbers are in our Salesforce.com Customer Relationship Management system, our customers will never have the burden of speaking to another human being again.

      • Actually it’s probably more like “Hey you 200 salespeople who’ve been coasting on base pay for the last 18 months better get looking for a new job.” Earners get seats (and no more admin assistants).

        They all knew this was coming, just a matter of when. Turns out it’s when the investors decide not to fund the “C round.”

      • HA HA HA! Please download the CRM app and supply a valid credit card number to file your warranty claim.

        Or as the old saying used to go, ‘Here’s a quarter; call someone who cares!’ 😜

    • Oddly enough I like the looks of the Rivian pickup. If I can grab one cheap and rip out a couple tons of battery and wiring, and swap in a 6V92 Detroit Diesel it will be something cool and useful. It won’t even gain weight!

  10. It doesn’t matter how good a product is if the vast majority of potential customers can’t afford it. You would think manufacturers would consider that but they don’t.

    I’m suspecting the sales value of orphan EVs will be low.

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