Rivian lawsuit warns Amazon vans could be delayed, the report said

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

Michael Wayland/CNBC

Rivian Automotive shares fell on Monday after a Wall Street Journal report that the up-and-coming electric vehicle maker is suing a key supplier in a lawsuit that could delay delivery trucks ordered by Amazon.

Amazon, a major Rivian investor, ordered 100,000 electric delivery vans last year.

Rivian, according to the report, accuses the Ohio-based Commercial Vehicle Group of violating its contract with Rivian to supply seats for the vans by sharply increasing its prices after the contract was signed. Court filings say the dispute could affect its ability to deliver the vans as promised, the Journal reported.

The Commercial Vehicle Group has denied the allegations, according to the report, arguing that it was under no obligation to supply the seats at the lower price and that it increased its price after Rivian submitted changes to the design of the seats.

Rivian shares fell about 6% in afternoon trading. Rivian and Commercial Vehicle representatives did not immediately respond to requests for comment.

Read the full report in the Wall Street Journal.

https://www.cnbc.com/2022/05/16/rivian-lawsuit-warns-amazon-vans-could-be-delayed-report-says.html Rivian lawsuit warns Amazon vans could be delayed, the report said

Gary B. Graves

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