Lucid (LCID) expands manufacturing in Saudi Arabia
Lucid Group, Inc. (LCID) is expanding its manufacturing in Saudi Arabia as part of a deepening partnership with Rockwell Automation (ROK), which provides manufacturers with industrial automation and digital transformation solutions.
According to an announcement from Rockwell, the facility will be located in the King Abdullah Economic City (KAEC). It will be Saudi Arabia's first vehicle manufacturing site.
Lucid is set to deploy Rockwell's enterprise software solutions, including its FactoryTalk manufacturing execution system (MES) software, at the manufacturing site.
The technology will be used to optimize and manage its production operations across general assembly, stamping, body, powertrain and paint.
Rockwell notes that its FactoryTalk software will provide Lucid with real-time visibility, traceability, and control across its operations.
“Lucid’s adoption of FactoryTalk MES is a strategic move that will deliver measurable outcomes in operational efficiency, quality, and scalability,” Ahmad Haydar, country leader for Rockwell Automation in Saudi Arabia, said in a statement.
“Our software will help Lucid meet its ambitious production goals while ensuring seamless integration with global supply chains and compliance with local standards.”
Rockwell's team in Saudi Arabia will also offer instructor-led and virtual training programs in order to equip local Saudis with cutting-edge EV manufacturing expertise, which will support the growth of a skilled workforce in the region.
Lucid has also partnered with Rockwell on its US-based manufacturing facility in Arizona as well.
“Rockwell Automation has been a trusted partner throughout our journey, from our Arizona factory to our expansion in Saudi Arabia,” Faisal Sultan, president of Middle East at Lucid, said in a statement. “Their software solutions and local expertise will help us scale production while maintaining the highest standards of quality and innovation our customers have come to expect.”
The company's stock is up 8.5% so far this year, having gotten a bump when it unveiled the new robotaxi that it has designed with Uber Technologies (UBER) at the Consumer Electronics Show (CES) in Las Vegas earlier this month.
For the robotaxi, the electric Lucid Gravity SUV has been outfitted with an Uber-designed in-person rider experience, which includes interactive screens that allow riders to personalize their trip with temperature control, music selection or even the ability to request that the vehicle pull over.
However the company's shares have fallen 6.6% over the past month and hit an all-time low at the end of December. The slump is due in no small part to complaints made by customers on X and Reddit that went viral last month about ongoing issues with their Gravity SUVs.
These issues include navigation malfunctions, fob malfunctions and other software glitches, as the EV news blog reported.
The complaints led Lucid interim CEO Marc Winterhoff to send out an email apologizing for the problems that drivers were having with their SUVs. Lucid also released a software update in an effort to eliminate the malfunctions.
Winterhoff wrote in the email that Lucid "will continue to relentlessly eliminate software issues and add new features regularly."
“The Lucid Gravity is designed and engineered to be a genuinely innovative, game-changing vehicle: a vehicle that truly does it all,” he said. “Lingering software problems have unfortunately affected our customers’ experience and satisfaction.”