Normal, Illinois — Rivan’s recent retooling efforts have “reduced [vehicle] complexity and lowered the cost associated with the vehicle body with a heavy emphasis on removing parts, processes and steps,” according to Rivian CEO R.J. Scaringe.
Scaringe said the changes have reduced nearly 1,500 joints and contributed to an expected 30 percent improvement in the R1 production line rate.
“The new R1 vehicles have hundreds of design, engineering and performance upgrades,” said Scaringe, with the most significant changes being new zonal architecture, a new computer and autonomy platform, new in-house drive units and a re-engineered suspension system.
Electrek reported that the brand has introduced “drastic cost savings measures,” stating that over 100 steps from the battery-making process; 50 components from the bodyshop and 500 parts from design have been eliminated.
![](https://www.collisionrepairmag.com/wp-content/smush-webp/2024/08/Rivian-costs.png.webp)
Scaringe said Rivian remains focused on reducing R1 costs beyond this year, suggesting that the company’s joint venture with Volkswagen Group will allow Rivian to achieve more favourable pricing from suppliers.
“This includes components, chipsets, printed circuit board assemblies and all the associated content related to those hardware systems,” he told investors during the Q2 2024 results call.
During its June investor day, Rivian told investors it expected a 20 percent reduction in material cost through optimizing vehicle cost structures between the R1 and R1 second generation. The plan involved cutting propulsion costs by 68 percent; body costs by 13 percent; electrical and other costs by 12 percent and chassis costs by seven percent.
The automaker also said it would be optimizing cost structure from the second-gen R1 vehicles to its new R2 vehicles, where the industry could expect a 45 percent material cost reduction; a 36 percent reduction in electrical and other costs; a 32 percent cost reduction in propulsion; a 17 percent cost reduction in body and a 15 percent cost reduction in chassis.
Rivian lost US$32,705 per vehicle delivered in Q2 2024, compared to US$32,595 loss per vehicle in Q2 2023.