(Reuters) – Rivian Automotive Inc said on Monday it was suspending its joint venture with Mercedes-Benz Vans, just three months after the two groups struck a partnership to manufacture electric vans in Europe.
The U.S. electric vehicle maker said it will focus on its existing consumer and commercial business as the group seeks to generate cash flow positive from its U.S. business.
“Pausing this partnership reflects our process of continuously evaluating our major capital projects, while taking into account our current and expected economic conditions,” Rivian Chief Financial Officer Claire McDonough said in a statement. .
Rivian, like other start-ups, is trying to cash in on demand for electric vans from traditional automakers, including Ford and General Motors.
Mercedes-Benz Vans and Rivian had signed a memorandum of understanding in September to produce electric vans at a plant in Poland, Hungary or Romania over the next few years, in a 50/50 joint venture.
Rivian’s business operations include the RCV platform currently used by the Amazon.com Inc. van that Rivian is currently building in Illinois. The company has a contract to supply 100,000 electric delivery vans to the American giant, its biggest investor.
The plan for a new Mercedes-Benz electric vehicle manufacturing site in Jawor, Poland, is unaffected and the pace of its electrification strategy remains unchanged, Mercedes-Benz Chief Executive Mathias Geisen said. Benz Vans.
(Report Maria Ponnezhath in Bangalore; French version Diana Mandiá, edited by Sophie Louet)
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