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As electric vehicle (EV) manufacturers strive to balance performance, luxury, and affordability, Rivian’s second-generation R1S SUV delivers a compelling case study in lean interior design. The Munro team recently reviewed the 2025 R1S to explore how Rivian managed to retain a premium feel while reducing unnecessary manufacturing costs—a challenge that’s pivotal for the company’s path to profitability.
Rivian’s earlier vehicles, like the R1T, were often admired for their luxury touches—but criticized for overdelivering in ways that weren’t financially sustainable. In the Gen 2 R1S, those lessons appear to have paid off. Let’s take a closer look at the engineering decisions and interior design optimizations that show how Rivian is evolving with discipline.
From Overbuilt to Optimized: The R1T Lessons
In previous Munro teardowns of the Rivian R1T, we noted an excessive investment in components—especially interior trim and finishes. While customers received high value for money, Rivian was spending more than it earned on each vehicle. Painted plastics, premium materials, and complex assembly steps drove up costs that didn’t necessarily improve user experience.
The R1S Gen 2 reflects a shift. Many of those previously painted parts are now grain-matched molded plastics—still attractive, but far more cost-effective. For example, seat side shields and track covers that once received expensive paint treatments are now unpainted. This subtle change alone can save $0.70–$1.00 per part. Across dozens of parts, those savings add up fast.
Trim Strategy: Smart Layering and Design Tolerances
One standout improvement in the R1S Gen 2 interior is the use of layered trim instead of butt-jointed seams. This approach improves both aesthetics and assembly. Layered designs accommodate manufacturing variances better than edge-to-edge joints, reducing the risk of misalignment and improving perceived quality for the customer.
This not only simplifies assembly but reduces rework and scrap rates—common cost drivers in interior manufacturing. The lesson here is clear: design for tolerance and the production line becomes more efficient.
Material Choices: Real Wood, Faux Leather, and Suede Headliners
Despite the cost reductions, Rivian hasn’t compromised the premium feel. The Gen 2 R1S still features real wood inlays—backlit in some places for visual flair. However, Rivian made subtle changes in grain alignment and panel splicing to reduce waste and simplify fitment.
In contrast to the R1T, the Gen 2 R1S may use a different artificial leather stock. It exhibits less surface wrinkling, which suggests a thinner or more rigid material—likely a cost-saving decision that also improves durability and cleanliness.
Even the headliner, a common area for cost cuts, uses artificial suede rather than woven or molded fabric. While still high-end, the choice shows Rivian is prioritizing value-per-dollar over extravagance.
Headrest Design: Too Much of a Good Thing?
One questionable area of investment remains: the decorative trim on the headrests. Each headrest includes a multi-part assembly of chrome, foam, adhesive, fabric, screws, and bezels—eight decorative components per headrest, and twelve headrests in total. That’s 96 pieces for a single visual effect.
This design, originally carried over from the R1T, is an area where simplification could yield significant savings. As noted in the review, reducing this to just the first and second row—or removing the decorative chrome altogether—could save time, materials, and cost without impacting customer satisfaction.
Solvent Adhesives: A Manufacturing Throwback
Another inefficiency in the R1S Gen 2 interior is the use of solvent-based adhesives in wrapped panels—particularly on rear seatbacks. These adhesives, manually applied with brushes, raise environmental concerns (VOC emissions) and require labor-intensive application. While suitable for exotic or low-volume vehicles like Ferraris, they’re out of place in a vehicle targeting higher-volume production.
Phasing out solvent-based adhesives in favor of hot melt or pressure-sensitive alternatives could streamline assembly and improve sustainability.
Seats and Structure: Hyundai Bones, Rivian Customizations
The R1S seat structure is sourced from Hyundai, a cost-effective and reliable base. But to adapt it to Rivian’s unique styling, engineers had to weld on additional supports and add plastic trim for visual and ergonomic integration.
This hybrid approach saves the cost of a fully custom seat but introduces complexity. It’s an example of a tradeoff: reuse what works, even if it requires a few extra parts to fit the design vision.
Interestingly, seatback recline and comfort features were retained even in the third row—an uncommon luxury at this price point. These comfort decisions signal Rivian’s intent to compete with legacy premium SUVs while keeping core EV advantages.
Third Row and Rear Cargo: Thoughtful Additions with Mixed Cost Impact
The R1S doesn’t skimp on third-row usability. Wrapped armrests with storage bins, USB ports, coat hooks, and multi-position seatbacks all enhance occupant comfort—especially for families. These features, while costly, appeal to a growing EV buyer segment: parents looking for practical utility without giving up refinement.
The rear load floor also includes dual storage bins—ideal for separating emergency gear from daily items. And Rivian added machined aluminum rails with adjustable tie-down points—a durable, modular feature commonly reserved for premium trucks and commercial-grade SUVs.
Final Touches: Carpeted Tailgate and Smart Outlet Design
One unique feature in the R1S is the carpeted lower tailgate—a detail rarely seen at this price point. This speaks to Rivian’s brand ethos of rugged luxury. It’s practical and premium, reinforcing the impression of thoughtful design.
Another small innovation is the slider cover on the rear power outlets. Unlike flip-up doors, sliders reduce breakage and eliminate springs and hinges. It’s a subtle improvement in both cost and durability.
Bottom Line: Smart Cuts That Preserve Value
At $75,000, the 2025 Rivian R1S Gen 2 is still a premium EV—but no longer one that’s over-engineered to the company’s financial detriment. By selectively simplifying materials, trimming assembly steps, and rethinking excess complexity, Rivian has preserved the high-end feel that early adopters loved—while nudging closer to sustainable profitability.
For engineers, investors, and EV enthusiasts alike, the R1S Gen 2 provides a compelling lesson in how to refine product design without sacrificing brand identity or customer satisfaction. It’s proof that cost-saving can coexist with craftsmanship—when backed by the right teardown insights and lean manufacturing principles.
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