Rivian lawsuit says Amazon vans could be delayed
Production of Amazon electric delivery vans on April 11, 2022 at Rivian’s plant in Normal, Illinois.
Michael Wayland/CNBC
Rivian Automotive shares fell on Monday after the report Wall Street Magazine that a new electric vehicle maker is suing a key supplier in a legal battle that could delay Amazon-ordered vans.
Amazon, a major investor in Rivian, placed an order for 100,000 electric delivery vans last year.
In the Rivian lawsuit, according to the report, the Ohio-based Commercial Vehicle Group is accused of violating a contract with Rivian to supply van seats by drastically raising prices after signing the contract. Court documents say the dispute could affect its ability to deliver the vans as promised, the Journal reported.
According to the report, the Commercial Vehicle Group denied the allegations, arguing that it was not obligated to supply the seats at a lower price and that it raised the price after Rivian introduced seat design changes.
Rivian shares fell about 6% in the middle of the day. Representatives for Rivian and Commercial Vehicle did not immediately respond to a request for comment.
Read the full report at Wall Street Magazine.
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