Rivian’s EV price hikes infuriated customers and now pre-orders are excluded
The 20% price increase made many consumers cancel their reservations
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW. She covers the full spectrum of the European tech ecosystem, with a particular interest in startups, sustainabili(show all)Ioanna is a writer at TNW. She covers the full spectrum of the European tech ecosystem, with a particular interest in startups, sustainability, green tech, AI, and EU policy. With a background in the humanities, she has a soft spot for social impact-enabling technologies.
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Ehm… what about Rivian’s ethics?
Rivianis citinginflation “on the cost of supplier components and raw materials” as the cause of the price increases, but consumers seem to believe that inflation is only a pretense to mask the company’s desire for a larger gross profit.
But it’s not the price increase itself that I find most disturbing. It’s the fact that Rivian is showing so little respect to the consumers who have supported it from the very beginning.
To change the predetermined price of a product, for which consumers were loyally waiting, is unacceptable. And to soothe the burn by offering a lesser version of the product for the same price? Insulting. Insulting as all hell.
I’m not arguing that inflation hasn’t affected the automotive industry — on the contrary,the average cost of a new car has surgedin the past two years. Nor am I saying that manufacturers won’t need to increase their vehicle prices to adapt. But no company wishing to establish itself should let any changes impact pre-existing orders.
Rivian tries to win customers back
Tow days later, the company admitted to “making a mistake,” as CEO RJ Scaringe wrote in aletterto Rivian’s customers. And to fix it, the EV maker is cancelling the price hikes for pre-orders made up until March 1, 2022.
Those who cancelled their reservations as a response to the increases will also have the opportunity to reinstate them. As per the letter:
Is this enough, though, to restore the customers’ broken trust? I’m not sure.
Rivian did damaged consumer loyalty and trust in its brand — which will probably take years to heal.
Update, December 15, 2021, 1125 CEST: Added information on Rivian’s response
