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American EV manufacturer Rivian has paused the production of Amazon delivery vans due to an issue with its supply chain.
The Irvine, California-based firm has cited a shortage of parts as the reason for the temporary stop with the company’s shares experiencing a modest dip in early trading on Friday.
A spokesperson for the company told Reuters that they expect to fully recover in the short-term from the loss of productivity, but work continues as normal on its own range including the R1S SUV and R1T pickup models.
“A part shortage has temporarily impacted our Electric Delivery Van (EDV) production. We expect to recover all missed production,” the statement said.
Rivian is not the only EV maker to have to contend with supply issues, with other brands feeling the pinch in recent times, impacting output. On this occasion, Rivian did not specify the parts or supplier at the center of the downturn, nor did they give time frames for when the pause was implemented and when full productivity would return.
Volkswagen Investment in Rivian
The ubiquitous Amazon delivery van is now a regular feature on our roads on both sides of the Atlantic, given the dominance of the e-commerce giant, which holds a 16% stake in Rivian.
It is considered to be the EV company’s largest single investor, with orders on its books for 100,000 vans to be on the road by 2030.
Rivian’s production is focused on its primary site in Normal, Illinois, where it currently rolls out all its stock, but a second site is planned in Georgia.
Last month, the company confirmed a $5 billion investment from the Volkswagen Group as part of a joint venture to develop EV infrastructure, which will also bolster the cash balance of Rivian until its R2 SUVs hit the market.
A German competition authority gave its assent to the deal, which also sees VW take a $1 billion stake in its partner.
