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Rivian suspends plans to jointly build electric vans in Europe with Mercedes-Benz

An Amazon Rivian electric delivery van at the company’s manufacturing facility in Normal, Illinois, USA, Monday, April 11, 2022.

Jamie Kelter Davis | Bloomberg | Bloomberg | Getty Images

Rivian On Monday, it suspended plans to build an electric commercial van in Europe and said it would “not pursue it further.” Agreement made with Mercedes-Benz just three months ago.

Rivian CEO RJ Scaringe said: “We have decided to suspend discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year to co-manufacture electric vans in Europe. ,” said the company, “providing the best risk-adjusted capital investment return.”

“At this time, we believe that focusing on our consumer facing business, rather than just our existing commercial business, is the most compelling near-term opportunity to maximize the value of Rivian,” he added. I was.

The US-based electric car maker said it remained open to exploring future work with Mercedes-Benz “at a more opportune time for Rivian”.The two companies signed an initial memorandum of understanding in September. signed.

Read more about electric vehicles on CNBC Pro

Mercedes-Benz said Rivian’s decision will not affect the timeline of its electrification strategy or plans to launch a new electric vehicle manufacturing site in Žavor, Poland.

Matthias Geisen, head of Mercedes-Benz Vans, said: “Exploring strategic opportunities with the Rivian team in the future remains an option.

Monday’s news European Union expresses concern About the U.S. Inflation Control Law sign the law by President Joe Biden in August.

According to the Department of Energy, the IRA “represents a historic $369 billion investment in modernizing America’s energy system.”

Among other things, the IRA includes a tax credit for electric vehicles who’s final assembly will be held in North America, which could pose a major challenge for European automakers going forward.

The EU, a major political and economic bloc of 27 countries, is planning Phase out sales of new diesel and petrol cars and vans.

— CNBC’s Silvia Amaro contributed to this report

https://www.cnbc.com/2022/12/12/rivian-pauses-plans-to-make-electric-vans-in-europe-with-mercedes-benz.html Rivian suspends plans to jointly build electric vans in Europe with Mercedes-Benz

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