Rivian Halts Plans to Make Electric Vans with Mercedes

Rivian announced on Monday that it would be halting the plans to manufacture electric vans and would “no longer pursue” its previous agreement made with Mercedes. 

The two companies signed their original agreement in September and Rivian stated it would still be open to working with Mercedes in the future “at a more appropriate time.” 

As for a reason why Rivian decided to pull out of the deal, CEO RJ Scarinage said, “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.”

He added, “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.” 

According to CNN, Rivian’s shared are down 74% year-to-date after having a very successful year in 2021. Additionally, “The company is also burning through money. It ended September with $13.8 billion in cash, compared to almost $17 billion at the end of March. Over the summer, it laid off 6% of its workforce.”