Electrical automobile maker Rivian Automotive on Monday mentioned it gained’t go ahead with a plan to make electrical vans in Europe with Mercedes-Benz, simply three months after agreeing to the pact.
“As we consider development alternatives, we pursue one of the best risk-adjusted returns on our capital investments. At this time limit, we imagine specializing in our shopper enterprise, in addition to our current industrial enterprise, characterize probably the most engaging near-term alternatives to maximise worth for Rivian,” mentioned RJ Scaringe, CEO of Rivian.
Rivian
RIVN,
shares had jumped 11% when the Mercedes deal was first introduced.
Rivian shares over this yr have tumbled 74%.
Mercedes-Benz
MBG,
says it can proceed to pursue the electrification of its vans. It mentioned the ramp-up plan for its EV manufacturing web site in Jawor, Poland shouldn’t be affected.
“We are going to proceed with full pace and willpower to scale up electrical automobile manufacturing in our first devoted electrical van plant – designed for optimum flexibility and productiveness. Exploring strategic alternatives with the crew at Rivian sooner or later stays an choice, as we share the identical strategic ambition: accelerating the EV adoption with benchmark merchandise for our prospects,” mentioned Mathias Geisen, head of Mercedes-Benz Vans.
Mercedes shares slipped 1%.
