“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…
By Ed Ludlow and William WilkesRivian Automotive in Irvine is shelving plans to jointly build electric vans in Europe with Mercedes-Benz AG, aborting a deal signed just three months ago to share costs and technology.
“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,” Chief Executive Officer RJ Scaringe said in Rivian’s statement. Rivian shares fell as much as 4.6% as of 9:35 a.m. Monday in New York, while Mercedes traded down 1% in Frankfurt.Mercedes saw partnering with Rivian as a chance to share tech and investment with an upstart as it electrifies its van lineup. While it will still invest in making vans at its Jawor plant that’s been producing combustion engines and batteries, further expansion to make room for Rivian is now on hold.
Rivian makes two models for consumers — the R1T pickup and R1S sport utility vehicle — and has a deal to build 100,000 electric delivery vans for Amazon.com Inc., one of its biggest shareholders. Its lone factory is in Normal, Illinois, and it’s planning to spend $5 billion on a new plant near Atlanta.This isn’t the first time Rivian has had a partnership with an established carmaker fall apart.
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