Rivian refuses cooperate with Mercedes Benz
2022.12.12 03:54
Rivian refuses cooperate with Mercedes Benz
Budrigannews.com – Just three months after entering into a partnership to produce electric vans in Europe, Rivian Automotive Inc. announced on Monday that it is suspending the partnership with Mercedes-Benz Vans.
In an effort to achieve cash flow positive operations in the United States, the manufacturer of electric vehicles stated that it would concentrate on its existing commercial and consumer businesses.
In a statement, Rivian Chief Financial Officer Claire McDonough stated, “The pausing of this partnership reflects our process of continually evaluating our major capital projects, while taking into consideration our current and anticipated economic conditions.”
Rivian competes with a crowded field of startups attempting to capitalize on the demand for electric commercial vans, which is being pressured by established automakers such as Ford and General Motors (NYSE:).
More Microsoft invests in London Stock Exchange
Under the 50/50 joint venture, Mercedes-Benz Vans and Rivian signed a memorandum of understanding in September to produce electric vans in Poland, Hungary, or Romania within the next few years.
The automaker’s RCV platform, which serves as the foundation for Amazon.com Inc. (NASDAQ:) van in Illinois that Rivian is building. Amazon, the company’s largest investor, has contracted the company to supply 100,000 electric delivery vans.
According to Mathias Geisen, head of Mercedes-Benz Vans, the strategy for its new electric vehicle manufacturing site in Jawor, Poland, is unaffected, and the pace of its electrification strategy is unaltered.
Supply-chain disruptions have also put pressure on Rivian, forcing the company to reduce its production forecast to 25,000 vehicles earlier this year.
