Rivian halts plans to make electric vans in Europe with Mercedes-Benz | Popgen Tech
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An Amazon Rivian electric delivery van at the company’s manufacturing facility in Normal, Illinois, USA, on Monday, April 11, 2022.
Jamie Kelter Davis | Bloomberg | Getty Images
Rivian said on Monday that it was halting plans to manufacture electric commercial vehicles in Europe and would no longer honor the agreement it had with Mercedes-Benz just three months ago.
“We have decided to suspend discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year for the joint production of electric vans in Europe,” Rivian CEO RJ Scaringe said, noting that the company ” the best risk-adjusted” pursuit. return” on its capital investments.
“At this 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,” he added.
The US-based electric vehicle maker said it remains open to exploring future work with Mercedes-Benz “at a more appropriate time for Rivian.” The companies signed their original memorandum of understanding in September.
Mercedes-Benz said Rivian’s decision would not affect the timeline of its electrification strategy or the planned ramp-up of its new electric vehicle manufacturing site in Jawor, Poland.
“Exploring strategic opportunities in the future together with the team at Rivian remains an option,” said Mathias Geisen, the head of Mercedes-Benz Vans.
Monday’s news comes at a time when the European Union has expressed concern about the United States’ Anti-Inflation Act, which was signed into law by President Joe Biden in August.
According to the Department of Energy, the IRA “represents a historic $369 billion investment in modernizing the US energy system.”
Among other things, the IRA includes a tax credit for electric vehicles whose final assembly takes place in North America, which could represent a major challenge for European car manufacturers in the coming years.
The EU, a large political and economic bloc made up of 27 countries, plans to phase out the sale of new diesel and petrol cars and vans.
— CNBC’s Silvia Amaro contributed to this report
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