Rivian’s electric delivery van production could slow down due to supplier dispute

Rivian‘s electric delivery van production could slow down due to an ongoing legal battle with one of their suppliers.

In March, Rivian sued Commercial Vehicle Group, accusing the company of violating their supply contracts.

The issue stems around a per unit price, which Commercial Vehicle Group nearly doubled the price for their seats.

Commercial Vehicle Group denies the claims and noted that they are not contractually obligated to the lower price.

The two companies’ legal battle is still in front of the courts. However, Rivian does not have an alternate seat vendor.

Wayne County Circuit Court Judge Brian Sullivan granted a temporary emergency order to keep production running, according to the Wall Street Journal.

The order requires Commercial Vehicle Group to continue to provide seats at the initial price.

There is currently no timeline for the court case to wrap up, but it comes at an important time for Rivian.

The company struggled to meet 2021 production targets on the consumer side. At the same time, their delivery van business aims to deliver 100,000 orders by 2025.

Rivian noted that it would take up to a year to find a new seat vendor if the agreement between Commercial Vehicle Group breaks down.

In a joint statement after the court case came to light the two companies seem to be on a path to a solution.

Commercial Vehicle Group confirmed they would continue to provide seats to Rivian. As well, the parties noted they are in discussions to find a resolution.

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