Rivian and Mercedes-Benz have paused plans to provide electrical industrial vans in Europe simply three months after the 2 automakers announced the partnership.
Rivian shares fell as a lot as 3.4% earlier than rebounding barely. Rivian shares are buying and selling at $26.62, down 2.46% because the market opened.
Mathias Geisen, head of Mercedes-Benz Vans, mentioned the collaboration with the Rivian crew has been primarily based on a typical engineering ardour and a powerful spirit of partnership. “That’s why I respect and perceive the choice of Rivian to prioritize the supply of their shopper enterprise and present industrial enterprise within the near-term,” he said in a statement.
Geisen added that the corporate’s electrification technique at Mercedes-Benz Vans stays unchanged and the ramp-up plan for its new EV manufacturing website in Jawor, Poland will not be affected.
Rivian founder and CEO RJ Scaringe mentioned in a press release that as the corporate evaluates progress alternatives, it pursues one of the best risk-adjusted returns on its capital investments.
“At this cut-off date, we imagine specializing in our shopper enterprise, in addition to our present industrial enterprise, signify probably the most enticing near-term alternatives to maximise worth for Rivian,” he mentioned.
For Rivian, which means sticking to North America, the place it produces and sells its two shopper autos — the R1T truck and R1S SUV — in addition to a industrial van for Amazon.
Final month, Rivian mentioned in its third-quarter earnings report that it remained on track to hit its annual manufacturing goal of 25,000 autos regardless of unpredictable provide chain crunches and part shortages.
Nonetheless, the corporate has needed to pull again on different progress plans as macroeconomic headwinds persist and prices rise. Rivian mentioned in its Q3 report it was delaying its next-generation R2 platform till not less than 2026. With the Mercedes deal now paused and the R2 platform, all eyes shall be on present-day issues and achievements like manufacturing and deliveries of its three present autos, operations at its present services and building progress at its new manufacturing unit in Georgia.