Amazon wants 100,000 electric vans. Can Rivian deliver?

Amazon has ordered 100,000 trucks to reduce carbon dioxide emissions, but Rivian will take years to deliver.

Almost three years ago, Amazon announced that it would buy 100,000 custom-built delivery vehicles from Rivian, a young electric vehicle maker. On Thursday, after some delays, the companies said hundreds of pickup trucks were finally on the road.

Battery-powered trucks key to Rivian's business plan and its survival in a highly competitive automotive industry. And they're an important part of Amazon's plan to curb carbon emissions as it builds its own fleet and relies less on contractors like UPS to deliver billions of orders for toothpaste, hair dryers, toys for dogs and various other products.

But questions remain about how quickly Rivian, about 18% of which is owned by Amazon, can fill the giant's order. retail. The automaker, which started producing vehicles in small numbers last year, is struggling to expand amid shortages of semiconductors and other components. And last week, Rivian warned employees to expect layoffs and other cost-cutting measures. Scaringe, the founder and chief executive of Rivian, said in an interview this week. He declined to say how many jobs might be cut.

"These are some of the toughest decisions one has to make as a leader, to know where we spend our money, where we focus or spend our time,” he added.

Amazon said it does not expect Not expecting all 100,000 trucks to be delivered before the end of the decade. In a November securities filing, Rivian said he planned to deliver all 100,000 trucks "by 2025". declined to say if that was still the plan, saying only that he hoped to deliver the vans sooner than Amazon expected.

In January, Ross Rachey, which oversees Amazon's global fleet, said the companies expect to deploy 10,000 as early as this year.So far, Rivian has delivered several hundred, and Amazon now expects to ship more. r "thousands" by the end of the year, said Udit Madan, vice president of transportation at Amazon.

Rivian also makes a pickup truck and a related sport utility vehicle. This means that the company is trying to set up two assembly lines at once - a daunting task for any automaker, especially a relative beginner.

The market emerging electric delivery vans is becoming more competitive. Ford Motor, a major shareholder of Rivian, began selling an electric version of its popular Transit van several months ago and has delivered around 3,000 so far. Ford has sold part of its stake in the company in recent months.

Rivian's production problems are symptomatic of the difficulties facing young electric vehicle manufacturers as they try to challenge the traditional automakers. Many are discovering how difficult and expensive it is to mass-produce vehicles, and time is not on their side as established companies are also rapidly moving towards electrification.

So far Tesla, which sells more electric cars than any other manufacturer, is the only electric vehicle manufacturer to have gained significant market share. But that company doesn't yet make or sell trucks.

Canoo, which announced plans to offer a spacious electric pickup truck this year, warned in May that it might run out of cash. Management "has identified substantial doubt about our ability to continue our business," Canoo said in a regulatory filing. The company's outlook improved this month when