BERLIN: Mercedes-Benz Vans and Rivian have signed a memorandum of understanding for a joint venture to produce electric vans in a factory in central or eastern Europe within the next few years, Mercedes-Benz Vans said today.
The companies are planning ways to produce both of their models on a joint production line, Mercedes-Benz said, adding it was also developing a new all-electric van architecture of its own called VAN.EA.
The two companies will make two large vans — one based on Mercedes-Benz's VAN.EA platform and the other based on the Rivian Light Van electric platform — at the plant, the statement said, without disclosing the precise location.
Mercedes also said it would restructure German factories that currently build Sprinter vans to offset higher costs for electric vehicles.
The collaboration with Mercedes comes at a crucial time for Rivian. The electric van and adventure vehicle company has struggled to ramp up production at its Illinois factory as supply chain disruptions and rising materials prices forced it to cut staff and delay product programmes. read more
Sharing the costs of a European assembly plant with Mercedes should help the startup, which burned through US$1.2 billion in the second quarter, conserve cash and save for its second US assembly plant planned for 2025.
Rivian is in a crowded field of startups trying to cash in on demand for electric commercial vans under pressure from established automakers who have moved quickly to counter the threat with electric vans of their own.
Ford Motor Co re-engineered its popular gasoline-fuelled Transit van to run on batteries, and now claims leadership in the US electric commercial van market with nearly 4,000 electric Transits delivered this year.
Mercedes-Benz Vans said in April its order books were full but factories were struggling with supply chain difficulties.
