[1/2]A Rivian Automotive Inc facility is pictured in Costa Mesa, California, U.S.,November 1, 2023. REUTERS/Mike Blake/File Photo Acquire Licensing Rights
Nov 20 (Reuters) – Rivian Automotive (RIVN.O) said on Monday that CEO RJ Scaringe would directly oversee all product development effective immediately as the electric-vehicle maker gears up to unveil and launch its smaller and cheaper vehicle family.
Chief Product Development Officer Nick Kalayjian would move to the role of executive vice president, vehicle engineering and propulsion before transitioning to an advisory role, the company said.
Rivian is ramping up production of its flagship R1S sport utility vehicle and R1T pickup truck, even as fears of a slowdown in EV demand spreads through the industry, and is set to reveal its R1 vehicles next year with production expected in 2026.
“It’s a big year for product for Rivian, so RJ is doubling down on the introduction of our new technologies in 2024 and the design and development of R2,” a spokesperson for Rivian told Reuters. “Nick will be advising through 2024.”
The company’s product reporting structure will include software, autonomy, design, vehicle, electrical, propulsion and programs categories, Rivian said.
“I want to stay as close to the development of our products as possible,” Scaringe said in an internal email seen by Reuters, adding that the quality and reliability teams would now report to him directly.
Earlier this month, Rivian raised its annual production forecast, banking on sustained demand for its trucks and SUVs — a departure from its rivals that are reeling from the double whammy of high inflation, which has dulled buyer appetite, and price cuts at market leader Tesla (TSLA.O).
Last month, Tesla CEO Elon Musk said he was concerned about expanding factory capacity given high interest rates, echoing caution from General Motors (GM.N) and Ford (F.N).
Shares in Rivian, which have fallen about 8% so far this year, were largely unchanged in after hours trading.
“I know that (Scaringe) spending more time working with our product teams will create significant value for all of us and our shareholders,” Kalayjian, who joined Rivian in 2020, said in another internal email seen by Reuters.
Reporting by Abhirup Roy in San Francisco and Bhanvi Satija in Bengaluru; Editing by Shilpi Majumdar and Bill Berkrot
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