Toronto, Ontario — In this weekly Tuesday Ticker, General Motors cooperates with authorities following a former manager’s arrest on bribery charges, while Rivian suffers another blow in market analyst predictions.
Fixed bids and bribery
A former General Motors manager has been accused of taking US$3.45 million in bribes from a South Korean parts supplier, according to reports from the L.A. Times.
Hyoung Nam So was arrested Thursday in Los Angeles, reported the newspaper. The indictment stated that beginning in Aug. 2015, So accepted US$3.45 million in cash from the parts supplier in exchange for fixing bids on a contract to supply GM with auto painting, window film and moulding.
So worked at GM from 2013 through 2015 as a manager in the automaker’s global purchasing supply chain in Detroit, Mi. He reportedly led the supply of parts used to build vehicle interiors.
GM said it is 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 subject of the investigation,” read a statement from the OEM.
Rakesh’s take on Rivian
Rivian Automotive stock has had a tumultuous few weeks with a market analyst trimming his price targets on the 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—though he now sees the stock rising to US$95 a share.
Rakesh also noted supply chain constraints facing the EV automaker could result in Rivian delivering fewer vehicles in the first half of the year. As the supply chain improves, Rakesh anticipates production to ramp up at Rivian.
Rivian delivered 920 vehicles in 2021 and said it had produced 1,410 vehicles this year, through March 22. For 2022, the automaker anticipates producing only 25,000 vehicles against analyst estimates of 40,000 units.
Rivian previously said that, had it not been for supply chain constraints, it could have produced 50,000 units this year.
As of Monday’s close, shares of Rivian were trading at US$45.75 per share, down 0.85 percent from Friday’s close.
