Missing parts: Rivian has to put Amazon van production on ice

According to US manufacturer Rivian, it cannot currently produce its delivery vans for Amazon, as it faces a shortage of parts. The production of Rivian's other models are not affected.

Image: Amazon

There is no information about which part is missing or when Rivian hopes to resume production. But apparently, the carmaker believes this to be a short-lived problem without any long-term consequences. “A part shortage has temporarily impacted our Electric Delivery Van (EDV) production. We expect to recover all missed production,” a Rivian spokesperson said in an email to Reuters.

In an email to Bloomberg, Amazon also seemed unfazed by the production pause. “We’re aware that Rivian encountered short-term production issues this month, and we don’t expect it to impact us,” an Amazon spokesperson said 

According to Rivian, the shortage had already begun earlier this month at its production facility in Normal, Illinois. Employees are not affected, as the carmaker says that all of them working on the van could still continue working 40 hours a week during the pause.

Just recently, Amazon announced that it already had more than 15,000 Electric Delivery Vans from Rivian in the US. The e-commerce giant initially signed an agreement for 100,000 units in 2019, the first of which were deployed in the US in 2022. All of them are to hit the road by the end of the decade.

Amazon is still one of Rivian’s major investors, holding a 16 per cent stake in the latter. The Electric Delivery Van was initially only produced for Amazon. However, the companies ended their exclusivity agreement at the end of last year, as firm orders from the online dealer remained below expectations.

According to Reuters, sales of the EDV to Amazon represented about 19 per cent of Rivian’s revenue last year. Overall, the carmaker delivered 50,122 vehicles in 2023, compared to 20,322 units in 2022. For this year, the California manufacturer has set a production target of 57,000 vehicles.

reuters.com, bnnbloomberg.ca

5 Comments

about „Missing parts: Rivian has to put Amazon van production on ice“
Shagi
21.08.2024 um 02:41
That's great. The Amazon drivers and DSP owners want nothing to do with those electric vans
Davis
26.08.2024 um 16:04
Did you survey all the drivers or are you just in the know?
Sean
26.08.2024 um 04:37
Why would anybody care what the delivery driver thinks about the van they aren't paying for? You think the UPS driver loves driving the trucks they do? Give me a break.
AlexT
25.08.2024 um 08:28
Why not? A decent electric van designed for parcel delivery is so much better than the legacy products currently used, and presumably the Rivian is better than the existing electric vans used by postal services.
Anonymous
26.08.2024 um 16:24
Just a reminder, what a company says and what they do are seldom the same. The EDV employees are not working their contract scheduled 40 hours per week and seldom working even 16 hours weekly. They have also been threatened with termination if they file for unemployment.

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