EV Maker Rivian Halts Production of Amazon Delivery Vans amid Parts Shortage

An Amazon EV van powered by Rivian is parked at the Amazon Logistics Facility in Chicago, Illinois, US, July 21, 2022. REUTERS/Jim Vondruska/File Photo Purchase Licensing Rights
An Amazon EV van powered by Rivian is parked at the Amazon Logistics Facility in Chicago, Illinois, US, July 21, 2022. REUTERS/Jim Vondruska/File Photo Purchase Licensing Rights
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EV Maker Rivian Halts Production of Amazon Delivery Vans amid Parts Shortage

An Amazon EV van powered by Rivian is parked at the Amazon Logistics Facility in Chicago, Illinois, US, July 21, 2022. REUTERS/Jim Vondruska/File Photo Purchase Licensing Rights
An Amazon EV van powered by Rivian is parked at the Amazon Logistics Facility in Chicago, Illinois, US, July 21, 2022. REUTERS/Jim Vondruska/File Photo Purchase Licensing Rights

Rivian has temporarily suspended production of its commercial delivery vans used by retail giant Amazon.com due to a shortage of parts, a spokesperson for the electric vehicle manufacturer said on Friday.

Shares of the Irvine, California-based company were down 1.7% in premarket trading.

The production halt is the latest in a series of supply chain challenges for Rivian, which, like other EV makers, has grappled with significant production issues over the past two years due to supplier shortages, according to Reuters.

Amazon, Rivian's largest investor with a 16% stake, has ordered 100,000 electric delivery vans to be deployed by 2030. Last year, sales to Amazon represented approximately 19% of Rivian's revenue.

Amazon did not immediately respond to a Reuters request for comment.

"A part shortage has temporarily impacted our Electric Delivery Van (EDV) production. We expect to recover all missed production," the spokesperson said in an emailed statement.

The company did not disclose any information about the specific part and supplier in question, and also declined to comment on when the production stoppage began and if it has resumed.

The part shortage would not affect the production of other Rivian vehicles, including its R1S SUV and R1T pickup models.

Earlier this month, Rivian had maintained its production forecast and said that deliveries would be slightly lower in the current quarter after it shut down its factory in April for retooling and modifications.



Apple Names Insider Sabih Khan as COO

The Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)
The Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)
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Apple Names Insider Sabih Khan as COO

The Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)
The Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)

Apple on Tuesday named insider Sabih Khan as its chief operating officer, taking over from Jeff Williams, as part of a long-planned succession.

Khan, who has been with Apple for 30 years and is currently the senior vice president of operations, will take on the new role later this month, the iPhone maker said in a statement.

Before joining Apple's procurement group in 1995, he worked as an applications development engineer and key account technical leader at GE Plastics.

Williams will continue to report to CEO Tim Cook and oversee the company's design team and Apple Watch.

The design team will report directly to Cook after Williams retires late in the year.