Georgia will be the new home of a Rivian Electric Truck Company assembly plant. The Associated Press reports that the $5 billion plant will employ 7,500 people east of Atlanta. This number could grow to 10,000 in the future.
Rivian is a startup auto manufacturer from California. Their focus is on electric trucks and commercial vehicles, so they rival companies like Tesla and Ford. If Rivian grows the plant to 10,000 workers, that will make it one of the biggest auto plants in the U.S. Some of the current biggest plants in the U.S. include the BMW complex in Spartanburg, South Carolina, and Ford Motor Co.’s plant in Louisville, Kentucky. The BMW plant employs 11,000 people and the Ford plant employs 8,600 people.
The plant will be the biggest one in Georgia’s history. Before, that title went to the Kia plant in West Point. Kia employs 4,400 people there. This is a win for Georgia, as they have a lot of auto plant failures in the state.
Georgia wasn’t the only option Rivian was considering. The startup received multiple incentive offers from states like Texas, Michigan, and Arizona. Fort Worth, Texas offered Rivian a package worth $440 million over the summer. Georgia’s incentive package is unknown, but the company could take advantage of the state’s “mega project tax credit” for companies that hire 1,800 workers or invest $450 million. If maxed out, that equals about $118 million in state income tax credits.
Similar to Tesla, Rivian cuts out the middleman of dealerships and sells to consumers directly. Georgia currently has a law that generally prohibits that, but maybe having the plant there will lead to law changes.
Is This Move Too Soon?
Some are wondering if this is too big of a move for Rivian. The company already owns one plant in Illinois, and its annual capacity is 150,000 vehicles. They’ve recently gotten an order from Amazon for 100,000 work vans, which launched them into the commercial van business. Their current market value is higher than Ford and General Motors. Amazon’s order is not enough to keep them afloat, and they must start bringing in other retail and commercial customers.
Rivian is also about to have way more competition in the electric pickup area. Both Ford and GM are planning on making their own electric trucks within the next couple of years. Not to mention Tesla’s plans for electric pickup trucks.
Rivian R1T Pickup Announced as 2022 Truck of the Year
MotorTrend recently crowned Rivian’s electric pickup the 2022 Truck of the Year. This may come as a surprise, but MotorTrend staff made sure that the pickup was worthy of the title. The pickup combines the new and old for a surprisingly comfortable, yet efficient truck. The R1T has a price tag of $70,000, but MotorTrend insists that it’s more than worth it.