Rivian Automotive Inc. registered a 9% decline in share price on October 10, 2022, after recalling around 13,000 of its electric vehicles (EVs), causing fear among investors that the EV maker would not be able to meet its production goal for 2023. The recall consists of all three models that Rivian offers: a pickup truck, an SUV, and a commercial delivery van. Manufacturing challenges hurt the automaker's stock price, which fell 70% so far in 2022.
The automaker recalled nearly all of its vehicles due to a possible loose fastener that could result in drivers lose control of the steering. The recall was made after the company discovered that a fastener connecting the upper control arm and steering knuckle could have been fitted incorrectly. The issue could result in excessive wheel camber or tilt, and in rare instances, wheel separation, which would impair the driver’s ability to steer the vehicle.
This is the third recall by Rivian since it started production late in 2021. The company issued a recall in May 2022 for about 500 vehicles following the discovery of a problem that could lead to passenger airbag failure. In August 2022, the company recalled over 200 vehicles after identifying issues with the seat belt anchors in some vehicles. At the end of the third quarter of 2022, Rivian produced around 15,300 vehicles. Although supply chain bottlenecks, notably with semiconductors, continued to impede Rivian’s plans to increase its manufacturing capacity and increase costs, the company has been gradually increasing monthly production. By the end of 2022, it aims to build 25,000 vehicles.
Recalls are common in the auto industry, particularly for new vehicles. In September 2022, Nissan recalled more than 200,000 pickup vehicles because of the possibility of the vehicles rolling out of the park. In June 2022, Ford Motor recalled more than 2.9 million vehicles in the US because of a damaged or missing item that prevented the vehicles from shifting into the proper gear. Toyota Motor Corp. recalled almost all vehicles of its new battery-powered SUV, the bZ4X, after discovering that incorrectly fitted bolts could cause the wheel to detach.
Germany
Japan
Netherlands
United States of America
Germany
Germany
South Korea
China
United States of America
Germany
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer