Tuesday Ticker: March 29, 2022

Toronto, Ontario ⁠— In this weekly Tuesday Ticker, General Motors is cooperating with authorities following the arrest of a former executive on corruption charges, while Rivian takes another blow in market analysts’ forecasts.

Fixed bids and bribes

A former General Motors executive has been accused of accepting $3.45 million in bribes from a South Korean auto parts supplier, according to reports from the LA Times.

Hyoung Nam So was arrested in Los Angeles on Thursday, the newspaper reports. The indictment said that from August 2015, So had accepted US$3.45 million in cash from the parts supplier in exchange for fixing bids on a contract to supply GM with paint. automotive, window films and moldings.

So worked at GM from 2013 to 2015 as the automaker’s global procurement supply chain manager in Detroit, Michigan. He reportedly led the supply of parts used to build vehicle interiors.

GM said it was cooperating with authorities.

“We have cooperated with the U.S. Attorney’s Office for the Central District of California throughout the process, which has confirmed that GM is neither a target nor a subject of investigation,” a statement from the agency read. OEM.

Rakesh’s view of Rivian

Rivian Automotive stock has had a tumultuous few weeks with a market analyst slashing price targets on EV stock twice this month.

Vijay Rakesh, an analyst for Mizuho Financial Group, cut Rivian’s price target from US$145 per share to US$100 per share in early March⁠, although he now sees the stock climbing to US$95 per share .

Rakesh also noted that supply chain constraints facing the EV automaker could cause Rivian to deliver fewer vehicles in the first half of the year. As the supply chain improves, Rakesh anticipates increased production at Rivian.

Rivian delivered 920 vehicles in 2021 and said it produced 1,410 vehicles this year, through March 22. For 2022, the automaker expects to produce just 25,000 vehicles against analyst estimates of 40,000 units.

Rivian previously said that, without supply chain constraints, it could have produced 50,000 units this year.

As of Monday’s close, Rivian shares were trading at US$45.75 per share, down 0.85% from Friday’s close.