Production of Rivian’s Amazon delivery van may be suspended due to litigation with the seat supplier
Rivian, a manufacturer of fully electric R1T pickups, has filed a new lawsuit against Michigan’s largest car seat manufacturer. The company has reached an agreement with Rivian to supply space for the upcoming Amazon delivery van. Now Rivian says the parts supplier has almost doubled its price and the production of the van may be delayed.
The group of commercial vehicles is the supplier of seats on the basis of this lawsuit and accordingly Wall Street Journal, they are still working directly with Rivian to find an out-of-court solution. Nevertheless, Rivian filed a lawsuit in March and asked to get rid of the rising cost of chairs.
He claims that if he does not receive this discount, the production of Rivian Prime Van or RPV may be completely stopped until a solution is found. While changing providers may seem like a solution, Rivian says it won’t work either. It is clear that it will take more than a year to replace it.
Related: Rivian’s Amazon delivery van comes in several different versions
The WSJ also reports that the initial contract amount for a single seat was $ 775, but in February this year, the Commercial Vehicle Group doubled the price. Rivian then paid a high price to avoid a break.
Prior to this news, Rivian had repeatedly stated that he wanted to place an order for 100,000 units of RPV from Amazon no later than 2025. A one-year delay could negatively affect this effort.
Commercial Vehicle Group, for its part, says it only raised prices after making a number of changes to the engineering and design of the seats. Rivian also says that after the dispute is resolved, he will be able to build vans and install chairs.
After some bad news recently, Rivian seems to be doing his best to keep the road going, even if it means setting up seats later. Shares of the fully-fledged electric startup fell nearly 7 percent to $ 24.33 on Monday. The hearing is scheduled for tomorrow, May 17, in Michigan.
