Rivian Parts way With Mercedes on JV plans
EV startup Rivian halted negotiations with Mercedes-Benz Group over a planned tie-up to produce electric vans in Europe!
Taht came as as part of a wider effort at the SUV and truck maker to conserve cash.
In September, both companies said they were starting negotiations on a potential joint venture at a Mercedes plant in Poland, which would have produced commercial vans for both auto makers.
Tweet of Mercedes announcement
Mercedes-Benz Vans and Rivian sign a Memorandum of Understanding for a strategic partnership. The planned joint venture will produce large electric vans for Mercedes-Benz and Rivian in Europe, starting in a few years. https://t.co/PSku0tLl3F pic.twitter.com/v8XdXWT3qX
— Mercedes-Benz Press (@MB_Press) September 8, 2022
Electric-vehicle maker’s move is part of wider effort to conserve cash
The company reported a total net loss of $5 billion in the first three quarters of this year.
At the same time, Rivian executives have been cautious about overextending operations in the wake of tightening capital markets and concerns over the economy.
Tweet by Teslarati on Rivian
Rivian $RIVN pauses joint venture with Mercedes-Benz to build EV vans https://t.co/SaH1e30wtc by @KlenderJoey
— TESLARATI (@Teslarati) December 12, 2022
Rivian, in a statement early Monday, said the move to break off joint-venture negotiations with Mercedes comes after re-evaluating its growth opportunities and opting to sharpen focus on projects that promise the best “risk-adjusted” return on investment.
The startup said it believes that its current business selling trucks and SUVs to retail customers and the commercial-van deal it has with Amazon.com Inc. are best positioned to drive profitability in the near-term.
Rivian said it would be willing to pursue a deal with Mercedes at a later date.
