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EV maker Rivian halts production of Amazon delivery vans amid parts shortage
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EV maker Rivian halts production of Amazon delivery vans amid parts shortage
Aug 16, 2024 6:38 AM

Aug 16 (Reuters) -

Rivian has temporarily suspended production of its

commercial delivery vans used by retail giant Amazon.com ( AMZN )

due to a shortage of parts, a spokesperson for the

electric vehicle manufacturer said on Friday.

The production halt is the latest in a series of supply

chain challenges for Rivian, which, like other EV makers, has

grappled with significant

production

issues over the past two years due to supplier shortages.

Amazon ( AMZN ), Rivian's largest investor with a 16% stake, has

ordered 100,000 electric delivery vans to be deployed by 2030.

Last year, sales to Amazon ( AMZN ) represented approximately 19% of

Rivian's revenue.

"A part shortage has temporarily impacted our Electric

Delivery Van (EDV) production. We expect to recover all missed

production," the spokesperson said in an emailed statement.

The part shortage would not affect the production of other

Rivian vehicles, including its R1S SUV and R1T pickup models.

Earlier this month, Rivian had maintained

its production forecast

and said that deliveries would be slightly lower in the

current quarter after it shut down its factory in April for

retooling and modifications.

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