EV maker Rivian Automotive RIVN has scrapped its return coverage that allowed prospects to return their new automobile in 7 days if it doesn’t meet their wants.
What Occurred: Rivian beforehand allowed new prospects to return their new autos inside 7 days or 1000 miles if it doesn’t meet their wants. The webpage referring to the coverage has now been taken down.
A Rivian spokesperson instructed Benzinga in an announcement that the corporate launched the 7-day return coverage to reassure prospects who have been unfamiliar with the model and its merchandise. Nevertheless, since then, the corporate has scaled its community of Service Facilities and demo drive fleet throughout the USA and Canada in order that prospects can take a look at drive earlier than buy, they mentioned.
The corporate now says on its web site that Rivian autos don’t have a return coverage. The corporate as an alternative urges prospects to schedule demo drives and take a look at the automobile earlier than making the acquisition.
“We encourage our prospects to get behind the wheel by scheduling a demo drive. You may even have the chance to do a automobile walk-around with a supply specialist previous to accepting supply, and are coated by Rivian’s industry-leading warranties,” the corporate assist web page now reads.
Why It Issues: Rivian at the moment has two autos in manufacturing, the R1T truck and the R1S SUV, each priced at round $70,000. The corporate has been accumulating losses for each automobile it delivered till the primary quarter of 2024 when it made a lack of almost $39,000 for every of the 13,588 autos it bought.
Rivian is seeking to flip its first-ever quarterly gross revenue within the fourth quarter of 2024 and has been making strikes geared toward slicing prices. The doable cancellation of the return coverage may additionally be geared toward that finish.
Final month, Rivian introduced its intent to type a three way partnership with Volkswagen geared toward creating software-defined automobile platforms for use in each gamers’ future electrical autos beginning within the second half of the last decade.
As a part of the phrases of the deal, Volkswagen will initially make investments $1 billion in Rivian after which as much as $4 billion till 2026. Each firms shall maintain a 50% stake within the JV which is predicted to be fashioned by the fourth quarter of 2024.
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Photograph courtesy: Rivian
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