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Rivian has paused production of its electric van, which it built for Amazon, because of a parts shortage. It’s the latest supply chain issue for the nascent EV maker.
The shortage began earlier this month, according to Rivian, but the automaker declined to say exactly which components were in short supply. A spokesperson for the company did say it expects to recover all missed production, however, there’s no timeline for that. From Bloomberg:
Part shortages are common in the industry, a Rivian RIVN+2.40% spokesperson told Bloomberg, adding that production of R1 electric pickup and SUV models is unaffected. All affected employees have the opportunity to continue working 40 hours a week during the pause.
The interruption marks another production hiccup for the EV maker as it works toward boosting output of its EV lineup next year. Irvine, California-based Rivian RIVN+2.40% currently makes battery-electric SUVs and pickups at its Illinois factory, along with the delivery van that it supplies primarily to Amazon AMZN-0.79%, its biggest shareholder.
Rivian has amassed a surplus of the delivery vans at the plant that are awaiting delivery to Amazon AMZN-0.79%. The carmaker has a deal to supply the company with 100,000 vans by the end of the decade, and about 15,000 are already in service in the US.
A spokesperson for Amazon told Bloomberg it is aware of the issue Rivian is having, but it doesn’t expect to be impacted by it.
Rivian’s vans account for a fraction of the overall fleet used to deliver packages for Amazon, which taps gig workers who drive their own vehicles, as well as traditional couriers such as UPS UPS-0.35% Corp.
Rivian Chief Financial Officer Claire McDonough has said the carmaker expects Amazon to take fewer deliveries during the fourth quarter, consistent with the online merchant’s seasonal pattern when it focuses on the holiday sales rush.
Earlier this month, Rivian doubled down on its target to build around 57,000 EVs this year between the van, the R1s SUV and the R1T pickup truck. That’s right in line with its 2023 levels.
A version of this article appeared on Jalopnik’s The Morning Shift.