Case Study: Rivian Automotive achieves EV production cost savings with aPriori

Rivian cuts BOM costs with aPriori, boosting gross profit per vehicle by $81,000

Rivian Automotive, a manufacturer of electric adventure vehicles, faced challenges with rising bill of materials costs and time-consuming cost estimation processes that were dependent on supplier quotes. To address this, Rivian's Cost Engineering team adopted the aP Pro platform from vendor aPriori to gain scalable, real-time cost visibility and support data-driven decisions.

Using aPriori's aP Pro, Rivian built a modern should-costing process to analyze part geometry and identify cost drivers early in design. This provided objective cost targets and strengthened fact-based supplier negotiations. The solution contributed to significant material cost savings, which were a primary driver in achieving a gross profit improvement of approximately $81,000 per vehicle in Q4 2023 compared to the prior year. aPriori also enabled Rivian to develop timely cost models for its next-generation R2 platform, significantly reducing its BOM costs.

Rivian Automotive