May 3 (Reuters) - Rivian Automotive ( RIVN ) named

Javier Varela its chief operating officer on Friday, bolstering

its ranks with the Volvo veteran as the electric-vehicle startup

expands its production facility even as it grapples with a

slowdown in demand.

Volvo said earlier this week that Varela would

leave the Swedish truck maker after an eight-year stint that saw

him rise to the role of deputy CEO and COO in 2022.

He will join Rivian in August, replacing Frank Klein who had

been operations head since 2022 and is stepping down after

helping with the ramp-up of the R1 SUVs and pickups.

"Varela will be central to the company's growth and

profitability," Rivian said. "He will oversee operations

including procurement, manufacturing, logistics and quality."

The company had on Thursday said it received $827 million in

an incentive package from the State of Illinois to expand

operations at its Normal facility, where it aims to produce its

less-expensive midsize SUV R2 model.