You are currently viewing Mercedes-Benz And Rivian Suspend Electric Van Collaboration

Mercedes-Benz And Rivian Suspend Electric Van Collaboration

—Rivian is pulling out of the deal with Mercedes-Benz to make commercial electric vans.
Rivian says it is choosing to focus on existing business, but Mercedes-Benz plans to continue on its own.
—The deal would have expanded Rivian’s customer base beyond the US.

Mercedes-Benz and Rivian have decided to put their joint electric van venture on hold for now. Their reasons differ with the German company still going forward with its independent EV plans.

Rivian, the American electric vehicle maker founded in 2009, has blamed the slowing tech economy for backing out of the deal.

“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,” Rivian CEO RJ Scaringe said.

Also read:
India And Vietnam Could Be Next Chip Stronghold As Focus Shifts From China
MrBeast Is Giving Away $1 Million On Fortnite, See How To Win
Why Elon Musk Has Come Full Circle On Twitter Verification Badge.

Meanwhile, Mercedes-Benz said that Rivian backing out does not affect its plan to ramp-up new EV manufacturing at its site in Jawor, Poland. “We will continue with full speed and determination to scale up electric vehicle production in our first dedicated electric van plant,” the company’s head, vans Mathias Geisen stated.

Both companies had signed a memorandum of understanding to build large commercial electric vans together at a manufacturing site in Poland. As The Verge pointed out, the deal would have introduced Rivian to European clients.

Rivian electric van for Amazon prototype
Rivian electric van for Amazon. Image Source: Automotive News Europe.

The American EV company had recorded a loss of nearly $2 billion in the second quarter of 2022 and still planned to invest a further $700 million in meeting its target of producing 25,000 vehicles by the end of the year. News about the deal with Mercedes-Benz raised its stock by 10 per cent but now that it is stuck in limbo, the shares price have dropped.

Rivian still has 7,000 vehicles to produce in 2022 to meet its target and claims to have 98,000 customer reservations for its R1T electric trucks and R1S SUVs. In addition, it owes Amazon 100,000 delivery EVs and must show that it can meet its 2030 promise or risk losing US business to Tesla, which has already delivered its first set of Semi Trucks to PepsiCo.

For your daily dose of tech, lifestyle, and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at and join our channel on Telegram at Plat4om. Finally, don’t forget to subscribe to OUR YOUTUBE CHANNEL.

Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.