Rivian Pauses Partnership Discussions With Mercedes-Benz on Electric Van Production in Europe

Rhea-AI Summary

Rivian has announced a pause on its plans to produce electric commercial vans in Europe, discontinuing its Memorandum of Understanding with Mercedes-Benz signed in September 2022. CEO RJ Scaringe stated that the focus will shift towards the current consumer product development and enhancing manufacturing capacity. This strategic move aims to maximize value and capitalize on consumer business opportunities. Rivian continues to emphasize its commitment to electric vehicle production and carbon-neutral energy transition, with flagship products like the R1T and R1S in the consumer sector.

Positive

• Rivian is prioritizing consumer product development and manufacturing capacity expansion.
• The decision allows Rivian to focus on existing commercial business opportunities.

Negative

• Rivian's pause on European van production may limit market presence and potential revenue growth.

Rivian to prioritize its current consumer product development roadmap and manufacturing capacity expansion as well as its commercial business

IRVINE, Calif.--(BUSINESS WIRE)-- Electric vehicle manufacturer Rivian has today announced it is pausing plans to produce its electric commercial vans in Europe and will therefore no longer pursue the Memorandum of Understanding with Mercedes-Benz. This Memorandum of Understanding was signed in September 2022.

RJ Scaringe, Chief Executive Officer of Rivian:
“We’ve decided to pause discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year for joint production of electric vans in Europe. As we evaluate growth opportunities, we pursue the best risk-adjusted returns on our capital investments. 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. We share the same goal as Mercedes-Benz Vans, to help the world transition to electric vehicles, and we look forward to exploring opportunities with them at a more appropriate time for Rivian.”

Mathias Geisen, Head of Mercedes-Benz Vans:
“Our collaboration with the Rivian team has been based on a common engineering passion and a strong spirit of partnership. That’s why I respect and understand the decision of Rivian to prioritize the delivery of their consumer business and existing commercial business in the near-term. While the timeline for our common European production joint venture is now on hold, the pace of our own electrification strategy at Mercedes-Benz Vans remains unchanged. The ramp-up plan for our new EV manufacturing site in Jawor, Poland is not affected. We will continue with full speed and determination to scale up electric vehicle production in our first dedicated electric van plant – designed for maximum flexibility and productivity. Exploring strategic opportunities with the team at Rivian in the future remains an option, as we share the same strategic ambition: accelerating the EV adoption with benchmark products for our customers.”

Rivian is building a brand and product portfolio with the objective of maximizing impact in the shift to carbon-neutral transportation. The R1T, R1S, and Electric Delivery Van (“EDV”) last-mile delivery vans are Rivian’s first vehicles in the consumer and commercial space. The R1T and R1S are flagship products for Rivian, uniquely combining performance, utility, and efficiency – see Rivian.com for further information. On the commercial side Rivian launched the EDV, which was designed and engineered by Rivian in collaboration with Amazon, as an anchor product to combat climate change at scale in the fleet market.

About Rivian

Rivian exists to create products and services that help our planet transition to carbon neutral energy and transportation. Rivian designs, develops, and manufactures category-defining electric vehicles and accessories and sells them directly to customers in the consumer and commercial markets. Rivian complements its vehicles with a full suite of proprietary, value-added services that address the entire lifecycle of the vehicle and deepen its customer relationships. Learn more about the company, products, and careers at rivian.com.

Forward-looking statements:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that do not relate to matters of historical fact should be considered forward-looking statements and are often identified by terms such as “will,” “should,” “target,” “aim,” “expects,” “plans,” “intends,” “targets,” or “believes” or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date when made, and Rivian undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law. Forward-looking statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. A discussion of other risks and uncertainties is contained in Rivian’s filings with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221212005259/en/

Europe: Harry Porter: +447776178609, hporter@rivian.com

US: Marina Hoffmann Norville: +1 914-391-7395, marinanorville@rivian.com

Amy Mast: +1 949-910-5290, amast@rivian.com

General: Press Office – media@rivian.com

Source: Rivian

FAQ

What is Rivian's recent decision regarding electric van production in Europe?

Rivian has paused plans to produce electric commercial vans in Europe and will no longer pursue the agreement with Mercedes-Benz.

Why is Rivian focusing on consumer products instead of commercial vans?

Rivian aims to maximize value by concentrating on consumer business and existing commercial opportunities as the most attractive near-term prospects.

When was the Memorandum of Understanding with Mercedes-Benz signed?

The Memorandum of Understanding with Mercedes-Benz was signed in September 2022.

What are Rivian's flagship products for consumers?

Rivian's flagship products include the R1T and R1S, which combine performance, utility, and efficiency.