US-based electric vehicle startup Rivian has announced it is pausing plans to produce its electric commercial vans in Europe and will therefore no longer pursue the Memorandum of Understanding (MoU) with Mercedes-Benz. This Memorandum of Understanding was signed in September 2022.
The company said it has other growth opportunities but did not rule out returning to discuss opportunities with Mercedes-Benz Vans in the future.
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RJ Scaringe, Chief Executive Officer of Rivian said: “We’ve decided to pause discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year for joint production of electric vans in Europe.
“As we evaluate growth opportunities, we pursue the best risk-adjusted returns on our capital investments. At this point in time, we believe focusing on our consumer business, as well as our existing commercial business, represent the most attractive near-term opportunities to maximize value for Rivian. We share the same goal as Mercedes-Benz Vans, to help the world transition to electric vehicles, and we look forward to exploring opportunities with them at a more appropriate time for Rivian.”
Mathias Geisen, Head of Mercedes-Benz Vans said : “Our collaboration with the Rivian team has been based on a common engineering passion and a strong spirit of partnership. That’s why I respect and understand the decision of Rivian to prioritize the delivery of their consumer business and existing commercial business in the near-term. While the timeline for our common European production joint venture is now on hold, the pace of our own electrification strategy at Mercedes-Benz Vans remains unchanged.
“The ramp-up plan for our new EV manufacturing site in Jawor, Poland is not affected. We will continue with full speed and determination to scale up electric vehicle production in our first dedicated electric van plant – designed for maximum flexibility and productivity. Exploring strategic opportunities with the team at Rivian in the future remains an option, as we share the same strategic ambition: accelerating the EV adoption with benchmark products for our customers.”
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By GlobalDataThe R1T, R1S, and Electric Delivery Van (“EDV”) last-mile delivery vans are Rivian’s first vehicles in the consumer and commercial space. On the commercial side Rivian has launched the EDV, which was designed and engineered by Rivian in collaboration with Amazon, as an anchor product to combat climate change at scale in the fleet market.
