Report says lawsuit against Rivian warns of possible delays for Amazon vans

Production of Amazon’s electric delivery trucks on April 11, 2022 at the Rivian plant in Normal, Illinois.

Michael Wayland/CNBC

shares Rivian Cars Monday sank after a report by The Wall Street Journal That a new electric car maker is suing a major supplier in a legal battle that could delay the trucks it orders Amazon.

Amazon, the lead investor in Rivian, placed an order for 100,000 electric delivery trucks last year.

Rivian’s lawsuit, according to the report, accuses Ohio-based Commercial Vehicle Group Violating its contract with Rivian to provide truck seats by sharply raising their prices after signing the contract. The newspaper stated in court documents that the dispute may affect its ability to deliver the trucks as promised.

The Commercial Vehicle Group denied the allegations, according to the report, arguing that it was not obligated to hand out the seats at a lower price and that it raised its price after Rivian made changes to the seat design.

Rivian shares were down about 6% in the middle of the afternoon. Rivian and Commercial Vehicle representatives did not immediately respond to a request for comment.

Read the full report at The Wall Street Journal.

See also  The influence of Russia and Ukraine on supply chains: foodstuffs, minerals and commodities

Leave a Reply

Your email address will not be published.