Amazon and Rivian's exclusive deal for electric vans might not last much longer2023-03-13 14:38 by Daniela
Tags: Amazon, Rivian
Rivian's looking to exit from its agreement to exclusively provide delivery vans to Amazon, according to reports from The Wall Street Journal and CNBC. As part of a deal made in 2019, the online retailer signed on to purchase 100,000 delivery vans from Rivian, but with Amazon reportedly only meeting the bare minimum of ordering 10,000 vehicles this year, the two are renegotiating.
The Amazon pact remains important for Rivian's finances. The vans currently represent one third of Rivian's production volume, and are helping to bolster manufacturing numbers that are still tiny compared to rivals like Tesla. Rivian only made 24,337 vehicles in 2022. Larger van orders would significantly expand the company's output and provide greater financial stability while the firm ramps up sales of its R1S SUV and R1T pickup, and works on its more affordable R2 line.
If Rivian scraps the exclusivity portion of the deal, it could allow the automaker to sell its vans to other companies. Rivian recently put its deal to build electric vans with Mercedez-Benz on hold amidst an uncertain economy that has led it to lay off hundreds of employees within the past year.
"Our relationship with Amazon has always been a positive one - we continue to work closely together, and are navigating a changing economic climate, similar to many companies," Rivian spokesperson Marina Norville says in a statement.
Read more -here-