Rivian and Mercedes team up to build electric vans faster
Rivian and Mercedes-Benz are teaming up to build big electric vans faster. The two companies signed a memorandum of understanding to develop a strategic partnership and create a manufacturing joint venture. They hope to use their shared resources to reduce costs and make electric vans more affordable while increasing production.
The goal is to produce two vans on common assembly lines. One would be based on the VAN.EA architecture of Mercedes‑Benz Vans. The other would center on Rivian's second-generation Rivian Light Van platform. The two parties will also examine "other options to increase synergies".
The companies aim to build the electric vehicles in a new plant at an existing Mercedes-Benz site in Central or Eastern Europe, starting within a few years. The plan is not set in stone, however, as Rivian and Mercedes-Benz have not reached a binding agreement and they are expected to overcome regulatory hurdles.
"We are delighted to partner with Mercedes-Benz on this project," Rivian CEO RJ Scaringe said in a statement. “Mercedes-Benz is one of the world's best-known and most respected automakers, and we believe that together we will produce truly remarkable electric vans that will benefit not only our customers, but the planet.”
The two companies have previously worked on electric pickup trucks, with Rivian striking a deal to build 100,000 for Amazon. However, Rivian has suffered some turbulence in recent months. It's not about building electric vehicles fast enough to meet demand. It recently laid off 6% of its employees in order to allocate more resources to building vehicles. The company is setting up a second electric vehicle factory in Georgia, but production won't start there until 2024. Partnering with Mercedes to create joint production lines could help it build minivans faster.
From Mercedes' perspective, this is part of a broader strategy to accelerate the transition to electric vans. The company said it is revamping its European production setup and that by the middle of this decade, all of its new vans will be fully electric.
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Rivian and Mercedes-Benz are teaming up to build big electric vans faster. The two companies signed a memorandum of understanding to develop a strategic partnership and create a manufacturing joint venture. They hope to use their shared resources to reduce costs and make electric vans more affordable while increasing production.
The goal is to produce two vans on common assembly lines. One would be based on the VAN.EA architecture of Mercedes‑Benz Vans. The other would center on Rivian's second-generation Rivian Light Van platform. The two parties will also examine "other options to increase synergies".
The companies aim to build the electric vehicles in a new plant at an existing Mercedes-Benz site in Central or Eastern Europe, starting within a few years. The plan is not set in stone, however, as Rivian and Mercedes-Benz have not reached a binding agreement and they are expected to overcome regulatory hurdles.
"We are delighted to partner with Mercedes-Benz on this project," Rivian CEO RJ Scaringe said in a statement. “Mercedes-Benz is one of the world's best-known and most respected automakers, and we believe that together we will produce truly remarkable electric vans that will benefit not only our customers, but the planet.”
The two companies have previously worked on electric pickup trucks, with Rivian striking a deal to build 100,000 for Amazon. However, Rivian has suffered some turbulence in recent months. It's not about building electric vehicles fast enough to meet demand. It recently laid off 6% of its employees in order to allocate more resources to building vehicles. The company is setting up a second electric vehicle factory in Georgia, but production won't start there until 2024. Partnering with Mercedes to create joint production lines could help it build minivans faster.
From Mercedes' perspective, this is part of a broader strategy to accelerate the transition to electric vans. The company said it is revamping its European production setup and that by the middle of this decade, all of its new vans will be fully electric.
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices correct at time of publication.
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