Rivian Drops Following Big Recall

By Michael Elkins

Shares of Rivian Automotive (NASDAQ:) dropped more than 6.5% in pre-market trading on Monday after the company announced that they would be recalling 13,000 vehicles. Rivian’s Chief Executive Officer RJ Scaringe wrote an email alerting staff on Friday that there would be a recall as the fastener to the front steering knuckle “may not have been sufficiently torqued” when the vehicles were manufactured.

“In rare circumstances, the fastener has loosened fully,” Scaringe wrote. “I want to reiterate that this is extremely rare, but it does reinforce why we are acting with urgency and caution.”

The problem could lead to excess wheel camber or tilt, and in some rare cases, separation of the wheel, impacting the driver’s ability to steer the vehicle

A spokesperson for Rivian told media that the recall is voluntary and the cost to perform the change was “not material.”

“The recall will not impact production, as Rivian has ceased producing vehicles with the insufficiently torqued steering knuckle fasteners, so this issue is not expected to persist,” Rivian’s spokesperson said.

There have been seven reports potentially related to the issue, but no injuries have been reported, Rivian said.

The recall campaign covers about 13,000 vehicles built in late 2021 and through September of 2022, and there are no known injuries related to this defect. Of the population of recalled vehicles, Rivian estimates 1% are impacted by this defect, the regulatory notice shows.

The recall covers all three models that Rivian currently sells: a pickup truck, an SUV and a commercial delivery van.

“If you experience excessive noise, vibration or harshness from the front suspension, or a change in steering performance or feel, you should call immediately,” Rivian CEO RJ Scaringe wrote in a letter to vehicle owners.

“The safety of our customers will always be our top priority, and we are committed to fixing this issue on any affected vehicles as quickly as possible,” the company said.

The electric vehicle company said the fix would only take a few minutes, and it expects to have finished the repairs on all of them in about 30 days, with customer collaboration.

Source link