Rivian pauses stated Monday that it would not continue to pursue?

Rivian stated Monday that it would not continue to pursue the agreement it reached with Mercedes Benz only three months ago.

Rivian CEO RJ Scainge stated, “We have decided to suspend discussions with Mercedes-Benz Vans concerning the Memorandum of Understanding” signed earlier in this year for the joint production of electric vans. Scaringe noted that the company was striving to achieve “the best risk-adjusted Returns” on its capital investments.

He stated, “At this time, we believe focusing our consumer business as well our existing commercial businesses represent the most appealing near-term opportunities for Rivian to maximize value,”

The U.S-based electric vehicle manufacturer stated that it was open to discussing future work with Mercedes-Benz at a “more appropriate time for Rivian.” In September, the companies signed their initial memorandum.

Mercedes-Benz claimed Rivian’s announcement would not affect its electrification strategy timeline or the planned ramp-up for its new electric car manufacturing site in Jawor.

Mathias Geisen (head of Mercedes-Benz Vans) stated, “Exploring strategically opportunities with the group at Rivian in future remains an option.”

Monday’s news is timely as the European Union has raised concerns over the United States Inflation Reduction Act. It was signed into law in August by President Joe Biden.

According to the Department of Energy the IRA is a historic $369 billion investment in modernizing America’s energy system.

Among others, the IRA provides a tax credit to electric vehicles whose final assembly occurs in North America. This could be a major challenge for European carmakers in years to come.

EU is a significant political and economic bloc, consisting of 27 nations. plans to eliminate the sale new gasoline and diesel cars.

Leave a Comment