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Rivian CEO on recall of 13,000 electric vehicles: ‘We don’t pave the way for it’


Rivian (RIVN) CEO and founder RJ Scaringe spoke about the electric car company recently remember against TechCrunch Disrupt This week, says in the car space: “Unfortunately there will be recalls – they happen.”

This month, Rivian recalled 13,000 vehicles amid concerns about loose tethers affecting driver control at the wheel. That’s nearly all the vehicles Rivian has ever delivered; The company started delivering vehicles last year, and since then, 13,198 vehicles have been delivered to customers. Scaringe told Rivian’s TechCrunch Disrupt audience, Rivian’s direct-to-consumer (DTC) model streamlines the company’s recall response.

“For us, one of the things that was really powerful was that we had a direct-to-consumer model, where instead of having to go through third parties or agents or different organizations, we had mobilize its entire service network to say let’s go he said.

“We’ve verified it,” he added. “We’re not sugaring it, we’re saying we’re going to fix this.”

Still, it’s bad news for a company that’s been struggling this year. Rivian, powered in part by Amazon (AMZN), has seen its shares drop about 70% year-to-date, as of Friday’s open.

Rivian, in the ‘next 10 to fifteen years’

When Scaringe talked about where he saw Rivian and how its industry would evolve over the next decade, he expressed deep concern that lack of battery recently just the beginning.

Rivian CEO RJ Scaringe speaks at a press event at Amazon Logistics Facility in Chicago, Illinois, U.S. July 21, 2022. REUTERS / Jim Vondruska

Rivian CEO RJ Scaringe speaks at a press event at Amazon Logistics Facility in Chicago, Illinois, U.S. July 21, 2022. REUTERS / Jim Vondruska

“The battery supply chain as we know it for lithium ion batteries, whether you are looking at lithium hydroxide or lithium carbonate, it is built primarily around consumer electronics,” he said. “It’s very small, it’s not a huge supply chain. So it has to grow 20X or 20X in the next 10 to 15 years and the investment required to build it is staggering. surprised.”

The auto industry this year has been affected hard by the supply chain crisis, working to overcome production shortage.

Going forward, Scaringe also suggests that Rivian’s product line could expand beyond cars over the next decade.

“When you look at transportation over the next 10 to 15 years, the way we think about our portfolio is that it’s going to be increasingly multimodal,” he said. “So sometimes we’ll use transportation, other times public transport, and we think increasingly [we’ll see] Electric Bicycle. “

E-bikes get an even bigger call from Scaringe.

“The e-bike space, that’s what we’re super excited about,” he said. “I think it will play an increasingly important role in transportation, both in the transport of goods for commercial purposes, but also for the movement of people.”

Allie Garfinkle is a Senior Technology Correspondent at Yahoo Finance. Follow her on Twitter at @agarfinks.

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