Riavach are not happy about the the Senate’s new climate package for one big reason: his expensive-ass trucks cost too much to qualify for the $7,500 tax credit for electric vehicles. Therefore, Riavach says the new bill would hurt the company and put it at a competitive disadvantage, according to Automotive News.
James Chen, vice president of public policy for Rivian, said the climate bill brokered between Senate Majority Leader Chuck Schumer and Democratic West Virginia Senator Joe Manchin would unfairly benefit competitors like Tesla and General Motors. Chen says those companies have had more time to ramp up production or do some manufacturing overseas, so their manufacturing costs are lower. That means they can sell vehicles at a lower price.
The way the new bill is currently constructed relates to the existing EV credit structure (the first 200,000 vehicles produced are eligible for the $7,500 credit regardless of price). Instead, the new bill would remove the 200,000 unit limit. Instead, incentives would only apply to vehicles costing less than $80,000 and customers making no more than $150,000 a year ($300,000 for a couple).
A quick glance at Rivian’s website reveals that you’d be hard-pressed to find a car they’d sell for less than $80,000. Sure, the R1S and R1T Both start below that mark, but not by much. Add a couple options and you’re done good $80,000 down on either rig.
While Rivian applauds the pending bill’s intent, “as currently drafted, this legislation will pull the rug out from consumers considering purchasing an American-made electric vehicle,” said Chen, whose roughly 6,000 workers employed by his company at an assembly plant in poor condition. Normal. Although the company announced last week that it was laying off 50 non-manufacturing workers at the factory, Rivian plans to hire more this year for normal manufacturing.
“The final package must extend the transition period to provide consumer choice and protect good-paying manufacturing jobs here at home,” he said.
Chen also says the company doesn’t even plan to offer a lower-priced vehicle until 2025.
Rivian is reportedly in contact with Senate leadership and senators from states it has interests in – such as Illinois, Michigan, California and Georgia – to see if the bill can be amended to allow startups like Rivian to use the old rules.