Illinois to offer Rivian extra incentives for R2 production

[NY_Rob]

That's exactly what I was explaining to a friend of mine over the weekend. We literally would've had R2s in our driveways by Q4 this year or Q1 next year if there hadn't been all the protests and legal holdup in GA

Makes me wonder if there was anything Rivian could have done in advance of purchasing all that land to gauge local opinion on building an automobile manufacturing plant at that location?

For example, if they held a "town hall" in our area revealing they have some interest to build a automobile manufacturing plant here... there would be instant uproar and protests with tons of media coverage. At least they would know what they would be up against if they decided to push ahead with their plan.

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[SANZC02]

I never understood the expansion in the first place. From what I understand, Rivian is nowhere near maxing out production in their current location, right? So why expand, especially after demand has been tapering off?

Maybe after they see the true demand with their R2 and R3 variants, then they can consider expansion again.

It is a tough balance trying to read the future and staying ahead of the curve without wasting resources.

With the efficiency upgrades in Normal they still only have a capacity of around 215k, if you do a 50/50 split between current models (CV, R1) and the new R2 that is only 100k R2s. That is not enough units for the lower priced vehicles. The initial phase in GA was only around 200k with subsequent phases taking them over 400k.

Seems R2 is slated for EU in 2027, they will need the additional capacity for R2 and R3 so another plant will be needed. They are probably just slowing the pace in GA and trying to get that running for 2027 so they can do R2 and R3 there. In the interview with Electric RJ was asked about 2030 for GA and his answer seemed to indicate that plant would be well before 2030.

 

[NY_Rob]

Weren't they planning to build a manufacturing plant somewhere in Europe too?

Is that on hold as well.. or did that only make it to the planning phase with no property purchased as yet?

 

[evguy]

Even when Normal is cranking at full volume of 215,000 units, overall profitability remains a question mark. I think GA is still needed for volumes that will ensure healthy margins. I think they'll raise $$$ to finish GA plant after executing on R1 cost reduction this year and proving that R2 is on track. (But take all my "predictions" with a big grain of salt. Until last Thursday, I was skeptical of the idea of starting R2 production in Normal....)

 

[Zoidz]

That plot of land is likely to be occupied by Burger King, McDonalds and mini-malls if Rivian bails. Those that fought against a major prestige business and well-paid career center will be left with the usual eye-sore roadside noise paying minimum wage just like 95% of the rest of America.

Don't forget Subway and Chik Fil A. There are strong opinions here!

 

[ERI]

Couple of misconceptions... Rivian does not own the Georgia site currently, the state of Georgia does. Rivian signed a lease to operate a factory on the site and has until 2030 to invest approximately 5 billion on its development.

https://www.reuters.com/business/au...arly-15-bln-debt-ev-plant-georgia-2023-11-14/

I imagine that the factory will be extremely important for exporting R series vehicles as the ports in South Georgia (Savannah and Brunswick) are tied in via rail and already handle quite a large number of vehicle being imported/exported (now number one in U.S.). Seems it would make sense to load those vehicle carriers with new Rivians to send around the world.

https://apnews.com/article/georgia-...ick-savannah-03babf5954cf6344ab79d4ca65ee7a44

 

[moosetags]

Along the line of taking deposits on the R3's, they should do that now. SuEllyn placed her R1 deposit on November 28, 2018. She received her R1T 4 1/2 years later. Taking R3 deposits now will show interest and faith in the company.

As far as the Rivian manufacturing process is concerned, maybe a lesson can be learned from Henry Ford. The Ford dynasty was built on two production vehicles, the Model T (1908-1927) and the Model A (1928-1931). Combined, there were twenty million of these vehicle sold. All of the actual manufacturing was done at Ford's Rouge River Plant in Dearborn, Michigan. The components were then bulk shipped to over twenty assembly plants throughout the United States and Canada where the vehicles rolled off the assembly line ready to be sold. No completed vehicles were assembled at the Rouge River plant. Even vehicles for the Detroit area were assembled at Detroit Assembly Plant, nine miles away.

Brian

 

[Hillbilly]

Not sure why they didn't make a big pitch to try to keep the expansion in state in the first place.

Access to better incentives in Georgia and workforce, labor laws.

 

[oskeei]

Lots of room for growth in the Normal area for Rivian. No need for them to have to buy/develop more land as there is a lot of unoccupied blacktop that looks like they could build on.

Would also love if tag up with their Bridgestone factory neighbors for next wave of OEM tires.

 

[COdogman]

Access to better incentives in Georgia and workforce, labor laws.

Yeah, but in the end that didn't really help them.

 

[Hillbilly]

Yeah, but in the end that didn't really help them.

It's still where rivian wants and will build. They're just too broke to do it now.

 

[Golfer04]

Lots of room for growth in the Normal area for Rivian. No need for them to have to buy/develop more land as there is a lot of unoccupied blacktop that looks like they could build on.

Would also love if tag up with their Bridgestone factory neighbors for next wave of OEM tires.

Rivian already has a purchase option on the 800 acres across the road (to west) from the current plant. The reason they looked elsewhere for the new plant was the labor pool. Bloomington/Normal is a community of a couple of hundred thousand and already had an outstanding economy. It will be interesting going forward to see if they can source the labor needed for the expansion. "The Site Magazine" just named Illinois one of the top states to do business in (hence the over 100 companies who moved their headquarters here in 2023). Their article references a large EV battery manufacturing plant just completed in Manteno. I'm not a Pritzker fan, but you can't complain about changes he has made in the business climate. Getting rid of Mike Madigan (who still hasn't gone on trial) was a huge deal for Illinois. When a company looks to build a manufacturing plant availability and suitability of the labor pool is the top consideration (after the corporate welfare amount, of course).

 

[Bee]

On the one hand, good for Rivian getting what everyone else is getting. On the other hand, can we please stop having states compete with each other for jobs at the benefit of big companies? This hurts everyone.

 

[HighVoltOverland]

That plot of land is likely to be occupied by Burger King, McDonalds and mini-malls if Rivian bails. Those that fought against a major prestige business and well-paid career center will be left with the usual eye-sore roadside noise paying minimum wage just like 95% of the rest of America.

I heard they were really hurting for another Dollar General

 

[crashmtb]

Lots of room for growth in the Normal area for Rivian. No need for them to have to buy/develop more land as there is a lot of unoccupied blacktop that looks like they could build on.

Would also love if tag up with their Bridgestone factory neighbors for next wave of OEM tires.

the "unoccupied blacktop" is staging for completed vehicles. Automobile factories output finished goods at a greater rate than shipping can happen.

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