The previously announced partnership between Rivian and Mercedes-Benz is on hold indefinitely.
Electric automaker Rivian announced Monday it would not actively continue developing its business partnership with Mercedes-Benz to develop a new van for the European market. The two companies both said in statements they may collaborate in the future, but for now such a deal is on hold — three months after originally announcing the joint venture.
“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,” said CEO RJ Scaringe.
Presently, Rivian is burning through money, spending more than $4 billion of its available cash on hand between March and September. At the end of the third quarter, the company had $13.8 billion cash-on-hand (compared to $17 billion in the first quarter). The company also faces headwinds in the market, as uncertain economic conditions caused its stock price to drop more than 77% from its initial public offering in November 2021. Rivian also laid off 6% of its 14,000-strong workforce over the summer.
Despite the California-based EV maker’s change of plans to build a new “second-generation”-engineered van, Mercedes-Benz is moving full steam ahead.
“We will continue with full speed and determination to scale up electric vehicle production in our first dedicated electric van plant,” said Mathias Geisen, who heads up Mercedes-Benz Vans. The company signed a memorandum of understanding with the Polish government Monday to build its first plant to build electric vans in the town of Jawor. The automaker already has an engine and battery factory in Jawor, which it built in 2017. The new plant will add 2,500 jobs to the area, according to Poland’s Ministry of Economic Development and Technology. For the moment, though, Mercedes did not announce a launch date for the plant.
While the TFL team has not driven the electric eSprinter van just yet, we will have more coverage coming up soon. Stay tuned!
