Photo: Rivia/Google Maps
Rivian may have waited more than ten years to reveal its first product. However, it is not waiting that much to search for new factories and trademarking names for new EVs. After it confirmed it was looking for a piece of land to build a new factory in the U.S., it is apparently doing the same in the UK, according to Sky News.
The EV startup – yet to deliver a single vehicle – is said to have discussed the matter with the British government, and Boris Johnson is apparently excited about it. Even the possible location is already defined. It would be in Gravity, a 616-acre terrain near Bristol. The German and the Dutch government are also willing to attract Rivian, though.
Although the UK is an important market, establishing a car factory there may seem counterintuitive after Brexit. Rivian cars would start their careers as less competitive vehicles than those made on the continent, because of taxes. On the other hand, Rivian could export them to countries with right-hand drive, making the idea of a British factory more attractive.
As for Germany, the issues Tesla is facing with the bureaucracy there – and with its own indecision about how it wants the factory to be – may be an issue for Rivian. The positive side is that it would also put the company in the heart of the largest car market in Europe. A plant in the Netherlands would have to focus on exporting most of its production.
The talks would be at the very beginning, and the investment should be superior to $1 billion (that’s what a regular car factory costs). What may make the difference is the government subsidy package the UK would be willing to offer to Rivian. If it is attractive enough, other short to midterm concerns such as taxes may be worth it.
As for Rivian’s new factory in the U.S., the R1T and the R1S are not the best options for the European market. The new factory should give one of the multiple nameplates Rivian already trademarked the substance it needs to reach customers. The Amazon delivery van may be an option for the British factory, but it would have much lower volumes than other vehicles Rivian may manufacture there.
Although the UK is an important market, establishing a car factory there may seem counterintuitive after Brexit. Rivian cars would start their careers as less competitive vehicles than those made on the continent, because of taxes. On the other hand, Rivian could export them to countries with right-hand drive, making the idea of a British factory more attractive.
As for Germany, the issues Tesla is facing with the bureaucracy there – and with its own indecision about how it wants the factory to be – may be an issue for Rivian. The positive side is that it would also put the company in the heart of the largest car market in Europe. A plant in the Netherlands would have to focus on exporting most of its production.
The talks would be at the very beginning, and the investment should be superior to $1 billion (that’s what a regular car factory costs). What may make the difference is the government subsidy package the UK would be willing to offer to Rivian. If it is attractive enough, other short to midterm concerns such as taxes may be worth it.
As for Rivian’s new factory in the U.S., the R1T and the R1S are not the best options for the European market. The new factory should give one of the multiple nameplates Rivian already trademarked the substance it needs to reach customers. The Amazon delivery van may be an option for the British factory, but it would have much lower volumes than other vehicles Rivian may manufacture there.
Google News