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What would happen if Rivian went out of business?

Gsxr150

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Snowballs chance in an oven...but what happens with service and warranty if Rivian ever went under? Let alone resale value... Thoughts?
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SANZC02

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Snowballs chance in an oven...but what happens with service and warranty if Rivian ever went under? Let alone resale value... Thoughts?
Someone would probably pick them up in a fire sale should it come to that. They have a lot of value in their IP and properties.

Worse case scenario would probably be something like the Deloren where you can still get repair parts today and they folded back in 1982 only having built around 9k vehicles.
 

ScottnAZ

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You’d be able to get one overnight with Amazon Prime 😂.

I’d agree with SANZC02 that someone would buy the company. But, all of us early adopters would get left behind as the new owners looked to make changes.
 

C.R. Rivian

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I don't see Amazon and Bazos letting them fail...maybe taking over the majority stake. There are other possibilities, of course, WSJ ran an article some months ago about a proposal that Apple made where the Normal plant would continue to make Rivian branded vehicles and the plant in Georgia would, under Rivian management, make Apple branded vehicles...hey, if nothing else, that would probably solve the CarPlay issue I keep hearing about...
 

kizamybute'

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We'd all have 7,000 lb paper weights once something broke!!

Kidding. Won't happen. Someone would take it over. Too much invested. Very few car companies make it this far. The fact that they're delivering vehicles and there's a strong demand for them, assures that the company has value. Doesn't mean they can't go bankrupt, but pretty much assures they're not going out of business anytime soon.
 

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Bezos wouldn't let it happen. He'd be 1st in line to buy. RJ has his shit together and is delivering. I'm a shareholder and LONG 7 - 10 yrs or more.
 

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As the driver of a car from the recently defunct Holden brand (Australian), I'll be the contrarian here. While somebody might buy the physical and intellectual property, there's nothing saying they have to do anything to benefit existing owners. No software updates, no parts availability, no service centers, etc. I also wouldn't expect the aftermarket to step in either if production numbers aren't high enough to warrant the initial cost investment. With more and more production moving in-house at Rivian, you won't even have third-party parts manufacturers being able to offer those parts directly. Obviously, I don't think this will happen, as I'm planning on buying an R1S, but I'm all too aware of what can go wrong. Should an accident befall my 6-year old car, I'd be needing to scrounge junk yards for parts for a limited production vehicle, and that is NOT IDEAL to say the least.
 

atebit

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Agreed. Initially, I think there’d be a lot of “rah-rah” from whoever bought them. But it wouldn’t take long for them to announce a “new direction” that would clearly put current owners in the rear view mirror.
 

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Dark-Fx

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As the driver of a car from the recently defunct Holden brand (Australian), I'll be the contrarian here. While somebody might buy the physical and intellectual property, there's nothing saying they have to do anything to benefit existing owners. No software updates, no parts availability, no service centers, etc. I also wouldn't expect the aftermarket to step in either if production numbers aren't high enough to warrant the initial cost investment. With more and more production moving in-house at Rivian, you won't even have third-party parts manufacturers being able to offer those parts directly. Obviously, I don't think this will happen, as I'm planning on buying an R1S, but I'm all too aware of what can go wrong. Should an accident befall my 6-year old car, I'd be needing to scrounge junk yards for parts for a limited production vehicle, and that is NOT IDEAL to say the least.
Where could you even get your imported car serviced in the states before? That feels like the more relevant question to me, someone who hasn't done that before.
 

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Florida Panhandler

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Unlikely Rivian files Chapter 11 anytime soon, but what is likely to happen (as is common for many startups including Tesla) is to start issuing new rounds of stock financing. This will water down the stock price which sucks for investors but keeps a company afloat. Tesla issued several rounds of stock to finance their growth and to survive. Elon recently said they almost went under trying to ramp up Model 3 production.
 

Speedrye

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Where could you even get your imported car serviced in the states before? That feels like the more relevant question to me, someone who hasn't done that before.
It was purchased and serviced through Chevrolet dealerships as Holden was a GM subsidiary. Mechanically, there aren't many issues as most of the drivetrain is shared with Corvettes and higher-end Camaro trims, but interior bits, or body parts get tricky in a hurry. GM didn't find us worth the effort to keep parts supplied even though all of the tooling for it is somewhere, in someone's warehouse probably.
 
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Gsxr150

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Thanks all for the replies! Interesting thoughts. I too fell that Rivian is too strong to fail at this point...but makes for an interesting discussion.
 

moosetags

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I don't see Amazon and Bazos letting them fail...maybe taking over the majority stake. There are other possibilities, of course, WSJ ran an article some months ago about a proposal that Apple made where the Normal plant would continue to make Rivian branded vehicles and the plant in Georgia would, under Rivian management, make Apple branded vehicles...hey, if nothing else, that would probably solve the CarPlay issue I keep hearing about...
The Apple thing is not too farfetched. Sears sold automobiles in their stores in the 1940's and 50's. The brand was Allstate. They were actually compact Kaiser Henry J's rebranded for Sears. They tried using Sears to promote sales. Kaiser went under in 1953 when it was taken over by Willys-Overland.

If Rivian were to get into trouble, they could brand a stripped down R1T as a Walmart.

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