Rivian puts EV venture with Mercedes on hold to focus on US operations
Rivian has put its plans to create an electric van joint venture with Mercedes on hold to focus on its US operations.
The electric van maker announced today it was pressing the pause button on the project to instead focus on its existing US business – which include a contract to supply Amazon 100,000 delivery vans.
Chief executive RJ Scaringe said its consumer and commercial businesses represented “the most attractive near-term opportunities to maximise 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,” Scaringe added.
Initially announced in early September, the partnership would have seen the establishment of a factory in Europe to cater to both companies.
Mathias Geisen, head of Mercedes-Benz Vans, said he respected and understood Rivian’s decision “to prioritise 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,” he explained.
The German marque announced today the opening of its newest factory in Jawor, Poland.
The electric van maker has been plagued by supply chain issues over the past few months, which forced it earlier this year to slash production forecasts from 50,000 to 25,000 vans.
Rivian quickly became a cautionary tale as it floated in November last year at the eye watering price of $105bn (£85.5bn), becoming the world’s highest valued company without a revenue.
Over the past 12 months, the company’s stocks plummeted to $26 – down 78 per cent on last year’s $118.90 per share – due to production and inflationary costs.