Rivian pauses production of Amazon EDV units due to parts shortage
Rivian paused production of its Electric Delivery Vans (EDVs) for Amazon last week, due to an undisclosed parts shortage.
On Friday, a Rivian spokesperson told Reuters that a shortage of parts caused a temporary pause on EDV production. Despite the pause, the electric vehicle (EV) maker expects to recover lost production, though the company has not disclosed the parts, nor the exact timeline for the pause.
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“A part shortage has temporarily impacted our Electric Delivery Van (EDV) production,” wrote the spokesperson. “We expect to recover all missed production.”
Amazon, which is a 16-percent stakeholder in Rivian and the EV maker’s largest stakeholder, commented on the news, saying that it was familiar with the “short-term production issues this month,” though it didn’t expect it to change anything about overall production plans.
Rivian’s vehicles are produced at the company’s factory in Normal, Illinois, and while the company has plans to build an additional facility in Georgia, the automaker announced plans to delay construction of the upcoming plant earlier this year. Instead, Rivian moved plans for production of the upcoming R2 platform to Illinois, gaining a huge state incentive package for the next-generation EV.
The news comes just as Rivian has been preparing to ramp up production of the EDV, along with delivering to customers beyond Amazon for the first time. Rivian announced a partnership with AT&T to deliver EDV units last December, after officially announcing plans to work with companies besides Amazon just a month prior.
Amazon employees have been piloting the Rivian EDV units for the past couple of years, and the company earlier this month surpassed 15,000 of the vehicles on roads—or a more than 50 percent increase within the last nine months.
In late June, Volkswagen announced plans to invest $5 billion into Rivian, with the two companies set to partner on software and a jointly developed EV platform. The first $1 billion was included in Rivian’s Q2 earnings, and was transferred as a convertible note into the EV maker’s stock.
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Source: https://www.teslarati.com/rivian-pauses-production-amazon-edv-parts/
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