Rivian, the US-based electric vehicle manufacturer, has temporarily paused production of its Electric Delivery Vans (EDVs) for Amazon due to a parts shortage. While the specific component causing the issue remains undisclosed, the company is optimistic about a swift resolution.
“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. The production pause, which began earlier this month at Rivian’s Normal, Illinois facility, doesn’t affect the production of the company’s other models.
Amazon also appears unconcerned by the production stoppage. “We’re aware that Rivian encountered short-term production issues this month, and we don’t expect it to impact us,” an Amazon spokesperson told Bloomberg.
Despite the temporary setback, Amazon remains a key partner for Rivian and a significant investor, holding a 16% stake in the company. Amazon initially placed an order for 100,000 EDVs in 2019, with deliveries commencing in the US in 2022. The e-commerce giant has already deployed over 15,000 of these vans and plans to have the full order on the road by the end of the decade.
Rivian and Amazon ended their exclusive agreement for the EDV late last year. Sales of the EDV to Amazon accounted for around 19% of Rivian’s revenue last year. The company delivered 50,122 vehicles in 2023, a significant jump from the 20,322 units delivered in 2022. Rivian has set a production target of 57,000 vehicles for this year.
