Production of Amazon vans Amazon Rivian may stop due to lawsuit with seat supplier

Fully electric R1T pickup manufacturer Rivian has filed a new lawsuit against a major car seat manufacturer in Michigan. The company in question has entered into an agreement with Rivian to supply seats for the future Amazon van. Now Rivian says the parts supplier has nearly doubled prices and that van production could be delayed.

Commercial Vehicle Group is the seat provider at the heart of this lawsuit and under Wall Street Journal, they are still working directly with Rivian to find a solution out of court. Despite this, Rivian filed a lawsuit in March and is seeking relief from a higher price per seat.

It specifically states that if he cannot get this help, production Rivian Prime Van, or RPV, can be completely stopped until a solution is found. While it may seem like a simple change of provider may be the solution, Rivian says it won’t work either. Obviously, he believes that it may take more than a year to find a replacement.

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The WSJ also reports that the initial dollar amount of the contract per seat unit was $ 775, but in February this year the Commercial Vehicle Group doubled the price. Rivian then paid a higher price to avoid a break.

Prior to this news, Rivian has repeatedly stated that it wants to fulfill his order for 100,000 RPV units from Amazon no later than 2025. A year’s delay could prove detrimental to these efforts.

For its part, the Commercial Vehicle Group states that it has only raised the price after a number of changes in the technique and design of the seats in question. It also says that Rivian can simply build vans and install seats after the dispute is resolved.

It would seem after a lot of recent bad news Rivian will do its best to keep the line moving, even if it means installing seats later. Shares of the all-electric startup fell nearly seven percent on Monday to an almost all-time low of $ 24.33. A hearing on the petition is scheduled for tomorrow, May 17, in Michigan.