🧠 Watchlist Wednesday: Copy Legendary Investors' Portfolios in One ClickCOPY FOR FREE

EV maker Rivian halts production of Amazon delivery vans amid parts shortage

Published 08/16/2024, 08:19 AM
Updated 08/16/2024, 01:36 PM
© Reuters. FILE PHOTO: An Amazon EV van powered by Rivian is parked at the Amazon Logistics Facility in Chicago, Illinois, U.S., July 21, 2022.  REUTERS/Jim Vondruska/File Photo
AMZN
-
RIVN
-

(Reuters) -Rivian has temporarily suspended production of its commercial delivery vans used by retail giant Amazon.com (NASDAQ:AMZN) due to a shortage of parts, a spokesperson for the electric vehicle manufacturer said on Friday.

Shares of the Irvine, California-based company were down 4%.

The production halt is the latest in a series of supply chain challenges for Rivian (NASDAQ:RIVN), which, like other EV makers, has grappled with significant production issues over the past two years due to supplier shortages.

"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 company did not disclose any information about the specific part and supplier in question and also declined comment on when the production stoppage began and if it has resumed.

Rivian produces all its vehicles at its factory in Normal, Illinois, with a second assembly plant planned in Georgia.

The part shortage would not affect the production of other Rivian vehicles, including its R1S SUV and R1T pickup models. Amazon said it is aware of Rivian's "short-term production issues this month", but does not expect it to have an impact.

© Reuters. FILE PHOTO: An Amazon EV van powered by Rivian is parked at the Amazon Logistics Facility in Chicago, Illinois, U.S., July 21, 2022.  REUTERS/Jim Vondruska/File Photo

The e-commerce giant, 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 represented approximately 19% of Rivian's revenue.

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.