Rivian Auto Parts has filed a lawsuit against the Commercial Vehicles Group over a seat issue.
A lawsuit filed by Revian against the commercial vehicle group in March alleges that the Ohio-based supplier threatened to cut off seats for Revian’s all-electric Amazon van if the carmaker did not pay “almost double the agreed price.”
Read more: Revian will produce 25,000 EVs this year, saving 10,000 since the price increase
The wording of the lawsuit has only become public, prompting Rivian’s shares to fall nearly 7 percent on Monday.
Commercial Vehicles Group provides Revian with driver’s seats, jump seats and various trims for Amazon vans. It is important that Rivian does not face too many obstacles in building the van as it has been contracted to supply 10,000 of them to Amazon by the end of this year. In all, Amazon has ordered 100,000 vans from Rivian.
Rivian claimed in the lawsuit that there were less than 100 seats left to install it, stating that it would be forced to stop production if the commercial vehicle group did not resume distribution of seats. The electric automaker added that there is no alternative supplier for the seat package and it could take up to a year to find another one. It is learned that Revian agreed to pay $ 775 per unit for seat packages and the supplier was demanding double that amount.
Commercial Vehicles Group denies violating its supply contract for Revian and says it had no obligation to provide seats at a lower price. The supplier further claims that it only increased the price after submitting various engineering and design changes to Rivian, The Wall Street Journal Report
Following the lawsuit, Wayne County Circuit Court Judge Brian R. Sullivan granted a temporary emergency order requiring the commercial vehicle group to continue providing seats during the trial.