By Nora Eckert, Abhirup Roy and David Shepardson DETROIT (Reuters) -One month after a $7,500 federal U.S. tax credit for electric vehicles and plug-in hybrids was scrapped, automakers are rethinking their product pipelines and focusing on cheaper models to keep car buyers interested, company executives said on Wednesday at a Reuters conference in Detroit. Volkswagen's U.S. chief said the company is pivoting to hybrids, which run on both gasoline and batteries, as it waits to see the natural level of cons ...

Production Timeline - Rivian R2 SUVs are expected to start production in 2028 [1] Project Status - The project is considered to have dealt with a lot of uncertainty in the last few years [1] - The recent event, while largely ceremonial, is an important step for the project [1]

Group 1: Company Challenges - Rivian shareholders face a crucial deadline with the expiration of the $7,500 federal tax credit by the end of the month, which could impact the company's near-term prospects [1] - The company has initiated its second workforce reduction of 2025, cutting approximately 150 employees, or 1.5% of its staff, primarily in commercial teams [2] - Rivian's stock has declined over 60% from all-time highs due to rising competition, sluggish demand, and a high cash burn rate, raising concerns about the expiration of the tax credit [3] Group 2: Product Development and Market Strategy - Rivian is preparing for the launch of its more affordable R2 SUV in 2026, targeting the mass-market segment with a starting price of $45,000 [4][5] - The R2 platform indicates a shift toward mass-market viability, expanding Rivian's addressable customer base beyond the $90,000 R1 flagship [5] - Rivian has achieved significant cost reductions, with R2's bill of materials costs contracted at roughly half the level of R1, positioning it for healthy gross margins [6] Group 3: Technological Advancements - Rivian's $5.8 billion software licensing partnership with Volkswagen validates its technological differentiation and provides recurring revenue streams [7] - The partnership represents one of the largest software licensing agreements in automotive history, showcasing the scalability of Rivian's software-defined vehicle architecture [7][8] - Rivian's clean-sheet approach utilizes just three computers compared to the industry-standard 100-plus electronic control units, enhancing its technological advantage [8]