Rivian CEO thinks suppliers are holding back parts

In a fascinating interview with the New York Post, Rivian CEO R.J. Scaringe did not hold back on the issues that Rivian is facing.

The company is facing significant issues in sourcing semiconductor chips, and evidently, the CEO is frustrated with how some suppliers treat his company.

Scaringe notes that:

“I have to call up semiconductor supplier Y and say this is how many Supplier X gave us and get everybody comfortable because the system’s unproven. It is really frustrating.”

Although some may see this as whining, it is a common problem, according to AlixPartners Managing Director Dan Hearsch.

“There is certainly allocation. Low volume manufacturers are up against skepticism – “are you guys for real?” – while larger players are willing and able to pay for a year’s worth of chips in one transaction. On the basis of volume, and reputation and consistency, they (larger automakers) are more attractive.”

To help better their relationship with suppliers, Rivian is on a media push. The company is also opening their factory for tours for media and suppliers.

At least to say, Rivian is dealing with a production issue.

Previously, the company announced that 50,000 was the goal for production for 2022. However,  with supply chain constraints, they have cut that in half to 25,000 vehicles in 2022.

Time will tell if Rivian can get their plant up and running and full speed and solve their current part and supply chain problem.


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