Written by Cláudio Afonso | LinkedIn | X
Rivian founder and CEO RJ Scaringe stated in an interview with “The InEVitable” podcast that the electric vehicle manufacturer is committed to expanding into the European market while considering the complexities of entering China.
Scaringe, CEO of the Irvine-based EV company, highlighted that existing subsidies for local Chinese brands make it challenging for non-Chinese entities to enter the market.
“For us, we’ve been really clear that it’s, today we’re focused on, in terms of major markets, US and Europe with R2 and R3. We’re watching how it plays out in China to determine whether or not we actually participate in China,” he said.
He compared the situation to Tesla’s entry into China, noting that the environment and US-China relations have changed significantly since Tesla began production in China nearly five years ago.
“I think the environment’s very different than let’s say when Tesla launched into China, and the relationships between the US and China are very different, and as a result, the openness for us to participate there, it’s a different place than it was,” he said.
Scaringe also emphasized the intense price competition in China. “And I think on top of that, to participate in that space today, it’s extremely price competitive.
There’s a lot of… It’s extremely price competitive, and to the point of competing well under cost,” he added.
“There’s a pretty rich labyrinth of subsidies that exist for Chinese-based companies that also make it quite difficult for a non-Chinese entity. Plus 97 car brands. There’s a saturation,” he said.
Despite these challenges, Scaringe reiterated Rivian’s commitment to the European market while carefully considering the potential for expansion into China. “We’re committed to Europe,” he said, adding that the company is “thinking about China.”
Last week, Rivian announced that its Chief Commercial Officer and President for Business Growth, Dr. Kjell Gruner, has resigned less than one year after joining the company.
J.D. Power published last week its 2024 U.S. Automotive Performance, Execution and Layout (APEAL) Study, revealing that Rivian topped the ranking with 900 points out of 1,000.
Earlier this week, the company updated its Canadian website to reveal the pricing for its upcoming, smaller, and more affordable R2 model.
The new model will start at CAD $66,500, which is approximately USD $48,100, making it about $3,100 more expensive than its US counterpart, priced at $45,000.
During Rivian’s third annual Family and Friends Day in July, a company executive disclosed that the R2 model has already garnered “well over 100,000 pre-orders.”
Written by Cláudio Afonso | LinkedIn | X
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