Washington (Business Emerge), August 17: In a recent update, Rivian, an electric vehicle manufacturer, announced a temporary halt in the production of its commercial delivery vans for Amazon due to a parts shortage. This latest challenge adds to the ongoing supply chain issues that Rivian, along with other electric vehicle makers, has been grappling with over the past two years.
Despite the pause in van production, Rivian reassured that the supply shortage would not affect the manufacturing of its other vehicles, including the R1S SUV and R1T pickup models. Amazon, Rivian’s largest investor with a 16% stake, acknowledged the “short-term production issues” but confirmed that these are not expected to impact their operations.
Earlier this month, Rivian had maintained its production forecast, with a slight dip in deliveries for the current quarter after temporarily shutting down its Illinois factory in April for retooling and upgrades. The company, headquartered in Irvine, California, experienced a 4% drop in its stock price following the announcement.
Rivian has not provided specific details about the part or the supplier involved in the shortage, nor have they disclosed when the production pause began or if it has resumed. All of Rivian’s vehicles are currently produced at its facility in Normal, Illinois, with a second plant under development in Georgia.
Amazon has ordered 100,000 electric delivery vans from Rivian to be deployed by 2030, with last year’s sales to Amazon accounting for approximately 19% of Rivian’s revenue. Despite the recent setback, Rivian remains optimistic about recovering any missed production in the near future.