All-Electric R1T pickup truck maker Rivian has filed a new lawsuit against a major automotive seat maker in Michigan. The company in question has struck a deal with Rivian to provide seats for its upcoming Amazon delivery van. Now, Rivian says the parts supplier has almost doubled its price and production of the van could be delayed.
The Commercial Vehicles Group, the seat provider at the center of the lawsuit, and the Wall Street Journal, are still working directly with Rivian to find a resolution out of court. Nonetheless, Rivian filed suit in March seeking relief from the high seat price.
It specifically complained that if it could not get that relief, production of the Revian Prime Van or RPV could come to a complete standstill until a solution was found. While it may seem like simply changing suppliers may be the solution, Revian says it won’t work either. Clearly, it believes that a replacement can take more than a year to find.
Related: Revion’s Amazon Delivery Van comes in a variety of styles
The WSJ added that the original contract price per seat unit was $ 775 but in February this year, the commercial vehicle group doubled the price. Rivian then pays a high price in an attempt to avoid an obstacle.
Until this news, Rivian has repeatedly stated that it wants to fulfill its 100,000-unit RPV order from Amazon after 2025. A year-long delay could prove to be a backbreak to that effort.
For its part, the commercial vehicle group says it has raised prices following several changes to the engineering and design of the seats in question. It further states that Revian can only build vans and install seats once the dispute has been resolved
It seems that after the recent bad news, Rivian will try its best to keep the line running, even if it means that the seats will be installed at a later date. Shares of the all-electric startup fell nearly seven percent on Monday to an all-time low of $ 24.33. A motion hearing is scheduled for tomorrow, May 17, in Michigan.