EV maker Rivian Automotive (NASDAQ:RIVN) has scrapped its return policy that allowed customers to return their new vehicle in 7 days if it does not meet their needs.
What Happened: Rivian previously allowed new customers to return their new vehicles within 7 days or 1000 miles if it doesn't meet their needs. The webpage referring to the policy has now been taken down.
A Rivian spokesperson told Benzinga in a statement that the company launched the 7-day return policy to reassure customers who were unfamiliar with the brand and its products. However, since then, the company has scaled its network of Service Centers and demo drive fleet across the United States and Canada so that customers can test drive before purchase, they said.
The company now says on its website that Rivian vehicles do not have a return policy. The company instead urges customers to schedule demo drives and test the vehicle before making the purchase.
"We encourage our customers to get behind the wheel by scheduling a demo drive. You'll also have the opportunity to do a vehicle walk-around with a delivery specialist prior to accepting delivery, and are covered by Rivian's industry-leading warranties," the company support page now reads.
Why It Matters: Rivian currently has two vehicles in production, the R1T truck and the R1S SUV, both priced at around $70,000. The company has been accumulating losses for every vehicle it delivered until the first quarter of 2024 when it made a loss of nearly $39,000 for each of the 13,588 vehicles it sold.
Rivian is looking to turn its first-ever quarterly gross profit in the fourth quarter of 2024 and has been making moves aimed at cutting costs. The possible cancellation of the return policy might also be aimed at that end.
Last month, Rivian announced its intent to form a joint venture with Volkswagen aimed at creating software-defined vehicle platforms to be used in both players' future electric vehicles starting in the second half of the decade.
As part of the terms of the deal, Volkswagen will initially invest $1 billion in Rivian and then up to $4 billion until 2026. Both companies shall hold a 50% stake in the JV which is expected to be formed by the fourth quarter of 2024.
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Photo courtesy: Rivian