![]() Rivian, which counts Inc (AMZN.O) and Ford Motor Co (F.N) as major shareholders, has been slammed. "On the basis of volume, and reputation and consistency, they (larger automakers) are more attractive," Hearsch said. Low volume manufacturers are up against skepticism - "are you guys for real?" - while larger players are willing and able to pay for a year's worth of chips in one transaction, he said. "There is certainly allocation" by chip suppliers, said Dan Hearsch, managing director in the automotive practice for consulting firm AlixPartners. Rivian is not the only automaker caught in a supply chain twilight zone. Scaringe thinks suppliers are holding back, wondering if Rivian is using semiconductor shortages as an excuse to cover up more serious production problems. "I have to call up semiconductor supplier Y and say this is how many Supplier X gave us, and get everybody comfortable because the system’s unproven," Scaringe said while piloting a golf cart through the factory. They are instead allocating more chips to established customers based on the numbers of vehicles they have built in the past, Scaringe said during a tour of the plant. Chip suppliers are skeptical of the young electric vehicle company's capability to hit promised production numbers. Scaringe can't get all the semiconductors Rivian needs to accelerate the assembly lines at its factory in Normal, Illinois. Scaringe needs to sell a lot more electric vans and pickup trucks to boost a beaten down stock price and fund his ambitious long-term growth plans, but the startup is having trouble buying the parts to build them. NORMAL, Ill., April 18 (Reuters) - Rivian Automotive Inc (RIVN.O) CEO R.J.
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