? RJ's Letter -- Making it Right -- REVERSING THE PRICE CHANGE FOR PREORDER HOLDERS

[thrill]

While I absolutely agree that those brave individuals played a MAJOR role in the correction, I know for a FACT that we had some very STAUNCH supporters in the rank and file at Rivian. They were willing to make a hardline stand for us, the community, as well!

A tip of the (Rivian branded) cap to the Inner Guard.

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[FHM]

Go build a model x and then think about whether they over compensated. A reasonable solution would have been a smaller increase for pre-holders (or discount on new pricing), but we are now being sold vehicles well below value. To me, that's over compensating, but doesn't really matter at this point. Anyone that cancels now probably wasn't going to complete their order anyways.

Well said. The original agreement was very clear that the price was not guaranteed. Anybody that is unaware of the massive inflation in material costs is living in a cave. If they had handled communication better from the start (my reservation is more than 2 years old and their comm has been miserable from the start) they could have gotten away with a more modest increase, which I would have accepted. But the way this was handled was a case study on incompetent corporate/customer communications! Even at the price going forward if they deliver on their software, this is a bargain compared to the alternatives. In my town there are dozens of Tesla Model X's. Rivian will sell dozens here at their value. With comparable stats, which would you rather own? The real or fake SUV?

 

[moosehead]

A tip of the (Rivian branded) cap to the Inner Guard.

Bravo. Inner Guard + Rivianforums Army is formidable.

 

[SoCal Rob]

Folding flat is only part of the problem. If the interior narrows near the gate, as frequently occurs in third-row seat vehicles, then it becomes a lot less useful to me, since my loads tend to be wide at the base. Admittedly, it's probably not a common issue that would stop many people.

First, an important point: If Rivian published detailed specs and dimensions we wouldn’t need to have speculative discussions like this because you’d be able to judge what the cargo area in a 7-seat R1S can accommodate.

I understand what you want but I doubt that a 5-seat version will make a difference. I say that because, from what I’ve seen, only really large volume manufacturers tend to make radically different plastic panels. So, while a Ford or GM product may have different side panels in the cargo area of a 5– versus 7-seat SUV, smaller manufacturers take different approaches.

Our Land Rover is a 7-seat and the cargo area dimensions and plastic panels are the same as the 5-seat version, all else being equal. The 7-seat differences are modifications to the existing 5-seat panels. On ours, the 5-seat panels got cutouts filled with inserts for things like 3rd row cup holders and 3rd row HVAC vents in the C pillar. Manufacturers may add an armrest cushion onto an existing hard plastic side panel, but Land Rover didn’t even bother doing that.

They did the same thing with the front bumper on our Land Rover for the parking sensors + fog lights. I assume that making a single mold for large plastic parts which can have material removed to accommodate optional equipment is way cheaper than creating multiple molds.

Given that the weight gain is probably a fraction of percentage and Rivian provides the 2 extra seats to us at the same cost, the only downsides I can think of are 2 extra seatbelts which may need to be pushed aside when loading (hopefully designed to stay out of the way) and 2 longer/extra side curtain airbags which increase repair costs in the event they are deployed.

 

[DuckTruck]

[Edit: I started writing this late last night and absolutely ran out of gas. Like many of you, sleep has been patchy this week. I finally had to put my phone down and crash. My dreams were filled with visions of Rivians and memories surrounding conversations about Rivians, and so on, and so on. Headed for my second cup of coffee now.]
___________________________________________

The last three days had to be three of the roughest days for everyone in the extended Rivian Family. That seems true for those inside the company, as well as for those of us who've been orbitng in the Rivian universe for over 3 years now - and counting.

After yesterday's letter from RJ, I'm writing here to express my true appreciation for how this situation ultimately was resolved. I'd love to see all of the warmth, love, humor, and comradererie return to those of us on the outside looking in as we wait for our vehicles. Some really extraordinary relationships with wildly diverse folks have been born and I want them to continue to grow and thrive. Fingers crossed that all those who cancelled jump back in.

I'm also looking forward to an increase in regular communications, hopefully some involving direct interaction with customers. Traveling roadshows that bring the visit and the discussion to the field would really help grow the connection between the company and us. I'm guessing internal communications processes are already being revamped. I also wouldn’t be shocked to learn that someone might not be able to sit comfortably for a few days.

On the plus side, at least nobody can say it's been another dull week.

Thanks to RJ and Rivian for getting it right!

I've loved this journey and the joyride of this past 3+ years and I'm thrilled to have it back on track. Now, let the Adventure continue!

All my best to all of you!

 

[Rico]

This is America. Buy it, don’t buy it, your choice. To the seller: once you have the vehicle you’ll get $25k profit on its sale. Some Lexus dealers are selling the LX 600 , Luxury trim, $36k over MSRP. You have the launch edition, collectors will go nuts for it!

 

[eggpaul]

Well said. The original agreement was very clear that the price was not guaranteed. Anybody that is unaware of the massive inflation in material costs is living in a cave. If they had handled communication better from the start (my reservation is more than 2 years old and their comm has been miserable from the start) they could have gotten away with a more modest increase, which I would have accepted. But the way this was handled was a case study on incompetent corporate/customer communications! Even at the price going forward if they deliver on their software, this is a bargain compared to the alternatives. In my town there are dozens of Tesla Model X's. Rivian will sell dozens here at their value. With comparable stats, which would you rather own?

This whole situation is baffling. They could have easily gotten away with a few thousand dollar increase on Feb 28. I don't know if anyone would have canceled. They could have maybe done a slow increase in the last year for a total of $5k and maybe it would be fine for a lot of people. Is the board and leadership a bunch of 23 year olds out of college who have never dealt with humans before?

It's really insane if you sit down and think about the whole process and how they reached it. Many are saying they talked about it for months, but I'm starting to think it was more like a few days.



Maybe our VP is leading the board meetings? - "It's time for us to do what we've been doing and that time is every day. Everyday it is time for us to agree".

 

[kurtlikevonnegut]

This whole situation is baffling. They could have easily gotten away with a few thousand dollar increase on Feb 28. I don't know if anyone would have canceled. They could have maybe done a slow increase in the last year for a total of $5k and maybe it would be fine for a lot of people. Is the board and leadership a bunch of 23 year olds out of college who have never dealt with humans before?

It's really insane if you sit down and think about the whole process and how they reached it. Many are saying they talked about it for months, but I'm starting to think it was more like a few days.



Maybe our VP is leading the board meetings? - "It's time for us to do what we've been doing and that time is every day. Everyday it is time for us to agree".

Yeah they could have announced the new pricing, applied the new price to anyone with an order placed after 12/31/21 and hit everyone with an order before that with a blanket 7-10% increase based on inflation and come away with very few cancellations.

 

[PAFDenver]

Holy smokes - reading through this thread i am trying to figure out how some folks were able to land jobs that paid enough they could afford these vehicles but didn't require basic comprehension and/or reasoning skills.

Apparently you and I have worked for a completely different set of bosses! In my world, incompetence rises!

 

[Matt D.]

I've heard that they are still tweaking Limestone... Very hard to get all of the nuance right.

Tweaking a color in photoshop isn’t that hard…?

 

[PAFDenver]

I haven't read all 32 pages (as I type this) of this thread, but am I the only one that isn't that impressed with the retraction letter? To me, it seemed like a standard "We really screwed the pooch, so we're undoing what we did." letter. It actually annoyed me a bit that it started off by not only stating the obvious (prices have risen over the 4 years) but seemed to kind of chide us for not realizing that they could legally raise the prices. The last point being completely untrue to anyone that had read any of the forums. I read that as rationalization for their error, not contrition.
I am still very happy that they did the U-turn, and did it so quickly, but it sure seemed like SOP to me. The letter was OK and I really hope that Rivian has reconsidered the value of the pre-order community and that our loyalty has limits. It was good that it came from RJ and not just Rivian, but it SHOULD have come from him personally.
I'm not criticizing the retraction (well, OK, just a little bit for the rationalization) but I don't understand why people are falling on their knees declaring this is the greatest move since Hannibal wondered "what about Pachyderms?" They screwed up, they un-did it and so I am happy to move forward with them. Albeit it slightly less happy than I was on Feb 28. I'll be evaluating their behavior in the future a bit more objectively and have put the rose-colored glasses back in the drawer.

 

[R1T7777]

I had the same question. I really just wanted 5 seats, not 7. Hauling stuff is better than hauling people. Stuff doesn't tell me how to drive.

You'll still be able to haul ass. Actually 2 more asses.

 

[R1T7777]

Not really. The $1,000 is applied as a credit to the order when you finalize. So if Rivian doesn't ask you to repay the deposit, then expect not to see that credit when you finalize. You'll end up paying the same, overall.

Obviously you're not getting a $1000 discount for having cancelled, but it's interesting that you get to keep the deposit until delivery. Guess they don't need my interest free loan anymore?

 

[R1T7777]

Bravo. Inner Guard + Rivianforums Army is formidable.

There are dozens of us, dozens!

 

[Inkedsphynx]

Obviously you're not getting a $1000 discount for having cancelled, but it's interesting that you get to keep the deposit until delivery. Guess they don't need my interest free loan anymore?

It was never a 'loan'. The money from pre-order deposits is held in escrow and Rivian cannot use it for any purpose other than applying it to your order.

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