About that Rivian Price Hike: Automaker Walks Back Markup
So much for that price hike.
Electric vehicle startup Rivian is scrapping a widely criticized move to jack up prices on buyers who had already pre-ordered the new vehicles.
“For anyone with a Rivian preorder as of the March 1 pricing announcement, your original configured price will be honored,” RJ Scaringe, the company’s CEO, said in an email to reservation holders that was obtained by the Driver. “If you canceled your preorder on or after March 1 and would like to reinstate it, we will restore your original configuration, pricing and delivery timing.”
The company had previously said it needed to boost prices on new pickup trucks and sport utility vehicles by as much as 20%, citing supply chain problems and rising costs.
“Since originally setting our pricing structure, and most especially in recent months, a lot has changed,” Scaringe reportedly said in the latest email to reservation holders.
“The costs of the components and materials that go into building our vehicles have risen considerably,” Scaringe added. “Everything from semiconductors to sheet metal to seats has become more expensive and with this, we have seen average new vehicle pricing across the U.S. rise more than 30 percent since 2018."
The reversal applies only to Rivian buyers with reservations in place by March 1. New buyers will still have to fork over more cash to get their hands on the electric vehicles.
The California-based auto manufacturer has had a busy stretch since going public last year.
Backed by Amazon, Rivian has long been expected to give Tesla some serious competition. Like Tesla, Rivian plans to sell cars directly to customers, rather than through a dealership or other middleman.
The company said earlier this year that it would focus production on getting vehicles with smaller battery packs - offering a range of more than 300 miles per charge - to buyers who have placed preorders. That means delaying the production of certain trucks and SUVs designed to get more than 400 miles per charge.
Rivian also announced that vehicles would come with an eight-year/170,000-mile warranty, covering the cars’ battery packs and electric drivetrain components. Everything else is covered for five years or 60,000 miles.
Lemon Law Rights for California Car Owners
The rush to get new cars out the factory door can pose risks for Rivian buyers and others on the road.
Even automakers who have been building vehicles for decades still struggle to ensure that their vehicles are safe to drive. They recall millions of cars, truck, vans, and other vehicles every year over a wide range of serious defects.
The good news is that car owners and lessors in California have some valuable rights and protections under the California lemon law. The law requires car manufacturers to perform various repairs on vehicles while they are under warranty. It also forces manufacturers to buy back covered vehicles that they are unwilling or not able to fix.
Speak with a California Lemon Law Attorney
If you have been stuck with a defective or malfunctioning vehicle, a California lemon law attorney at Bickel Sannipoli APC can help you fight back.