Three months after approving the Mercedes-Benz transaction, Rivian says it will not proceed with it.
Only three months after signing the agreement, electric car manufacturer Rivian Automotive announced on Monday that it will not proceed with a proposal to manufacture electric vans in Europe with Mercedes-Benz.
We look for the best risk-adjusted returns on our capital investments as we assess growth potential. According to RJ Scaringe, CEO of Rivian, "At this time, we think that concentrating on our consumer business as well as our current commercial company represents the most alluring near-term possibilities to maximise value for Rivian.
When the Mercedes agreement was initially disclosed, Rivian RIVN, -4.51% shares had increased 11%.Rivian shares dropped 5% in premarket trading, and they have lost 74% so far in 2022.
According to Mercedes-Benz MBG, -1.06%, it will keep working toward electrifying its vans. It claimed that the ramp-up schedule for its EV production facility in Jawor, Poland, is unaffected.
We will continue working tirelessly and resolutely to increase the capacity of our first facility exclusively for the production of electric vans, which is set up to be as flexible and productive as possible. We share the same strategic goal of advancing EV adoption with benchmark products for our customers, thus exploring future strategic options with the Rivian team is still an option, according to Mathias Geisen, president of Mercedes-Benz Vans.
Shares of Mercedes fell 1%.
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