Rivian has to stop making electric vans for Amazon

The shortage started earlier this month, according to Rivian, but the car manufacturer declined to claim specifically which components remained in short supply. A representative for the company did say it anticipates to recuperate all missed production, nonetheless, there’s no timeline for that. From Bloomberg:

Component shortages are common in the sector, a Rivian (RIVN) speaker informed Bloomberg, adding that production of R1 electrical pick-up and SUV versions is unaffected. All impacted employees have the opportunity to continue functioning 40 hours a week during the time out.

. Rivian Chief Financial Police Officer Claire McDonough has stated the carmaker anticipates Amazon to take less shipments during the 4th quarter, constant with the on the internet vendor’s seasonal pattern when it concentrates on the vacation sales thrill.

Rivian’s vans account for a fraction of the overall fleet used to deliver plans for Amazon, which faucets job workers that drive their own cars, as well as conventional carriers such as UPS (UPS) Corp

The disturbance marks one more manufacturing hiccup for the EV manufacturer as it works toward enhancing result of its EV lineup next year. Irvine, California-based Rivian (RIVN) currently makes battery-electric SUVs and pick-ups at its Illinois factory, together with the distribution van that it provides mainly to Amazon (AMZN), its biggest investor.

Rivian has actually collected a surplus of the shipment vans at the plant that are waiting for distribution to Amazon (AMZN). The carmaker has a deal to supply the company with 100,000 vans by the end of the decade, and around 15,000 are currently in solution in the US.