Rivian's Amazon electric delivery van production might face some delays after the electric vehicle (EV) startup sued its custom-seat supplier over alleged pricing issues.
(Photo : Justin Sullivan/Getty Images)
SOUTH SAN FRANCISCO, CALIFORNIA - MAY 09: A Rivian electric pickup truck sits in a parking lot at a Rivian service center on May 09, 2022 in South San Francisco, California.
The giant retailer Amazon ordered its first-ever electric vans from the EV startup Rivian, but it might have to wait longer than it should as production pushback looms.
Rivian Delivery Van vs. Seat Supplier
It is worth noting that Rivian brought the seat supplier of its electric delivery van, Commercial Vehicle Group Inc., to court last March, as per a news story by Fox Business.
The EV maker said in the lawsuit that the latter violated their supply contract.
Rivian claimed in its lawsuit that the auto supplier doubled the initial price per unit of the seats that were supposed to be installed on its electric delivery van.
However, the Commercial Vehicle Group has already responded to the claims of the EV startup, denying what Rivian stated in its lawsuit.
To be more precise, the seat supplier stated in its court filings that it did not have any contractual obligation when it comes to its pricing.
What's more, Commercial Vehicle Group added that it only decided to raise the price per unit after the EV startup provided changes in both the engineering and design of its electric van.
Rivian Amazon Delivery Van Production Delay?
Meanwhile, Rivian disclosed that it does not have any alternative supplier for the custom seats of its electric delivery van. Thus, it could take a couple more years before spotting a new firm to work on it.
(Photo : Michael M. Santiago/Getty Images)
NEW YORK, NEW YORK - MARCH 25: An Amazon delivery vans are seen leaving the Amazon's JFK8 Staten Island fulfillment center in Staten Island on March 25, 2022 in New York City.
That said, the ongoing dispute between the carmaker and its seat supplier could drastically affect the production of the electric van that Amazon ordered for its delivery fleet.
According to a recent story by Teslarati, Rivian also warned that if its auto supplier stops its deliveries of the custom seats, the production of the Amazon delivery van might have to be suspended.
The shut down of the production of its electric delivery van is expected to gravely affect its timeline of fulfilling orders.
It is interesting to point out that Amazon orders a whopping 100,000 units of the electric delivery van of Rivian, which the automaker plans to ship beginning in 2025.
Read Also: Rivian to Reorganize its Production for Faster Output, But Some Users Will Have to Wait Longer
Rivian Production Delays
Apart from the ongoing dispute with its seat supplier, Rivian is also suffering from the raging supply chain mess, which could also likely push back the production of its other EVs.
The EV startup wrote in its Shareholder Letter that it is already ramping up the production of the Electric Delivery Van 700, R1S, and R1T amid the supply chain issues.
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Written by Teejay Boris
