by A problem in its supply chain has caused American electric vehicle company Rivian to halt production of Amazon delivery vans.
The temporary halt was caused by a scarcity of parts, according to the Irvine, California-based company, whose shares saw a little decline in early trade on Friday.
The company’s representative told Reuters that while development on its own line, which includes the R1S SUV and R1T truck models, is continuing as usual, they do not anticipate recovering fully from the productivity loss in the near future.
Temporarily, our Electric Delivery Van (EDV) production has been hampered by a shortage of parts. We anticipate making up for any lost output, the statement read.
Not just Rivian, but other EV manufacturers have also had supply problems recently, which have affected production. This time, Rivian did not identify the parts or supplier that was the source of the decline or provide an estimated timeline for the pause’s implementation and the return to full productivity.
Volkswagen’s Investment in Rivian
Thanks to the supremacy of the e-commerce behemoth Amazon, which owns a 16% share in Rivian, the delivery van has become a common sight on our highways on both sides of the Atlantic.
It has orders on file for 100,000 vans to be on the road by 2030, making it the largest single investor in the EV industry.
Although a second location in Georgia is planned, Rivian’s manufacturing is mostly concentrated at its main site in Normal, Illinois, where it now rolls out all of its stock.
As part of a joint venture to create EV infrastructure, the company stated last month that the Volkswagen Group had invested $5 billion. This will help strengthen Rivian’s cash balance until its R2 SUVs are released into the market.
VW is also taking a $1 billion interest in its partner as part of the agreement, approved by the German competition regulator.
