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Home » Rivian Pauses Production of EV Delivery Vans for Amazon

Rivian Pauses Production of EV Delivery Vans for Amazon

A parking lot full of navy blue and white Amazon delivery vans, with a striped blue and white building in the background.
Photo: iStock / MikeDot
August 21, 2024
SupplyChainBrain

Electric vehicle maker Rivian has temporarily shut down its production of delivery vans for Amazon over a shortage in parts.

According to Reuters, Rivian did not specify which parts or suppliers it was experiencing issues with at its Illinois factory. The company noted that the shortage is limited to the line of EV delivery vans Rivian provides for Amazon, and that it isn't expected to affect its SUVs or electric pickup trucks. 

Amazon — which owns a 16% stake in Rivian — previously ordered 100,000 EV vans from the carmaker, which are still scheduled to roll off the assembly line by 2030. Sales to Amazon also accounted for 19% of Rivian's revenue in 2023. In a statement to Reuters, a spokesperson for the retail giant said that they don't expect any significant impacts from Rivian's temporary shutdown

This isn't the first time Rivian has struggled with parts shortages. In a 2022 earnings call, chief financial officer Claire McDonough said that Rivian went through multiple days of "production downtime" in October and November of that year, brought on by "a lack of supply of a key component."

The company is also expected to produce around 50,000 cars in 2024, down from its initial estimate of 67,170, and cut roughly 11% of its workforce in two rounds of layoffs in February and April of this year. 

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