Rivian has halted a deal to make electric vans with Mercedes-Benz in Europe as the start-up seeks to preserve cash reserves amid financial struggles by focusing on existing production in North America in deteriorating economic conditions.
The pair signed a memorandum of understanding in September to open a joint plant in central Europe to make battery electric delivery vans, arguing that joint purchasing and other synergies would help both companies increase market share faster. But on Monday, Rivian said it wanted to “pursue the best risk-adjusted returns on our capital investments” and was pausing the Mercedes partnership.
Rivian founder RJ Scaringe said: “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.” It already has US manufacturing operations making a pick-up truck and sport utility vehicle, as well as a delivery van for Amazon, and is in the process of developing a new generation of consumer vehicles.
Source: Financial Times