Lucid Motors Cuts Its Production Plan for 2022

Luxury electric car maker Lucid Motors has announced it has cut its production plan for the 2002 by almost half.

Plans for production of electric cars were constantly changing. The car maker originally intended to deliver 20,000 cars in 2022, but in February the target dropped to 12,000 cars. Once again, the company has reduced the plan to 6,000 to 7,000.

Only 679 cars were delivered in the second quarter, meaning that the new target requires Lucid to deliver at least five times as many cars in the second half of the year as in the first half.

The reduction in the plan is due to disruptions in the supply chain for components and raw materials. In a report to investors, CEO Peter Rawlinson said that the company plans to make structural changes to both the company and its supplier engagement scheme to increase production volumes. Management says it has already identified primary bottlenecks and is taking the necessary steps to address them, from optimising logistics to hiring new employees.

Rawlinson admitted that much of Lucid's production shortfalls were caused by the company's inexperience. Several unplanned stoppages at Lucid's Arizona plant "exposed the immaturity of our logistics processes." However, the company has hired several executives from traditional automakers to rectify the situation, including Steven David, former vice president of manufacturing at Fiat Chrysler Automobiles.

According to the company, 37,000 orders have been registered for the Lucid Air electric sedan. Moreover, it will set up its first overseas factory in Saudi Arabia. It will be able to produce 155,000 vehicles a year.