Rivian Sacks Hundreds Of Workers Following EV Subsidy Removal In The US

That the elimination of the Federal Tax Credit is bad news for Rivian and other EV manufacturers was already clear from common sense . For Rivian, this now means laying off approximately 200 employees, reports the Wall Street Journal via Automotive News. The layoffs coincide with the conversion of the factory for the Rivian R2, a compact SUV that strongly resembles the current and (in America) quite popular R1S. With the R2 and the also-announced R3, there is indeed hope for Rivian, but the short-term situation is challenging. According to reports, this affects approximately 1.5 percent of Rivian’s total workforce.

General Motors and Volkswagen, among others, are also affected by the elimination of the Federal Tax Credit, which provides American EV buyers with thousands of dollars in savings until September 30th. GM is scaling back production of the electric Cadillac Lyriq and Vistiq, while Volkswagen is slowing down production of ID4s in Chattanooga, Tennessee.

• Also See: After Investing 5 billion Euros In Rivian, VW Was Impressed