Thursday, May 26, 2022

Rivian recalling 500 pickup trucks over faulty air bags

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Rivian Automotive is recalling about 500 2022 R1T electric pickup trucks in the United States because the airbags may not deactivate when a child is in the front passenger seat.

Rivian said it is not aware of any accidents or injuries related to the issue and will replace the passenger seat in the recalled vehicles. The National Highway Traffic Safety Administration adopted the requirements after dozens of children were killed in the 1990s because of the impact of airbag deployments.

Despite the recall, Rivian shares were recently up 21% to $ 24.88, a day after reaffirming its annual production forecast of 25,000 units.

On Wednesday, the Irvine, Calif.-based company said ongoing supply chain disruptions and material costs prevented the electric vehicle maker from reaching its original target of 50,000 vehicles.

Rivian reaffirmed its annual production forecast of 25,000 units.

“We remain focused on ramping production throughout 2022. We believe that the supply chain constraints will continue to be the limiting factor of our production,” Rivian said in a letter to shareholders, adding that it would be able to double its annual output absent supply constraints.

Rivian had halved its 2022 forecast in March as it struggled to secure the chips needed to make its R1T pickup truck, R1S SUV and electric delivery van for Amazon.

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