Spokesperson for Rivian Automotive Inc. said Monday that supplier Commercial Vehicle Group Inc. “Continues to supply seats to Rivian” and that the two companies are “discussing resolving” the dispute that sparked a lawsuit in Michigan court.
Rivian claimed in a lawsuit filed in March that the Commercial Vehicle Group, a auto parts maker from New Albany, Ohio, threatened to stop supplying seats if the automaker refused to pay “about twice the agreed price.”
Suppliers and automakers often disagree on spare parts prices – especially as commodity prices rise as they do now – but disputes rarely go to court.
Rivian shares on Monday it fell 6.9 percent to $ 24.86 and fell 76 percent this year. The commercial vehicle fell 2.4 percent to $ 6.45.
The suit includes supplies of car components such as the driver’s seat, seat and trim used for the battery-powered vans that Rivian is building for Amazon. The technology giant, one of Rivian’s biggest investors, has ordered 100,000 electric vans to deliver the startup, the first 10,000 of which are due to appear by the end of this year.
The commercial vehicle did not receive an immediate response to the comment request. The Wall Street Journal reported the lawsuit earlier Monday.
Rivian, of Irvine, Calif., Claimed in the lawsuit that it had less than 100 packages of seats left to install and that it faced an “imminent shutdown” of the entire production line for battery-powered vans. He also argued that the Commercial Vehicle Group would not allow it to place new orders for additional packages of seats at higher prices.
Case – Rivian Automotive LLC v. Commercial Vehicle Group Inc., 22-002806-CB, Michigan, Third Judicial District, Wayne County, Michigan.
Automotive News contributed to this report.
https://www.autonews.com/automakers-suppliers/rivian-negotiating-seating-supplier-following-lawsuit
