Rivian has stated that it is putting those plans on hold in order to concentrate on its own business, just three months after announcing a partnership with Mercedes to manufacture commercial electric vans in Europe. In a press release, the company stated, “At this point in time, we believe focusing on our consumer business, as well as our existing commercial business, represent the most attractive near-term opportunities to maximize value for Rivian.”
Despite the fact that the company stated that it would “no longer pursue the memorandum of understanding with Mercedes-Benz,” the breakup appears to have been amicable and may not be long-lasting. “Exploring strategic opportunities with the team at Rivian in the future remains an option, as we share the same strategic ambition: accelerating the EV adoption with benchmark products for our customers,” said Mathias Geisen, head of vans at Mercedes-Benz. It also stated that Rivian’s commercial electrification strategy would not be affected by the decision.
In the past year, Rivian has encountered some setbacks. Notwithstanding being truly outstanding of subsidized EV new businesses, the organization reported the previous summer that it would lay off six percent of its labor force with an end goal to reduce expenses. It had previously disclosed that it would increase prices on pre-ordered vehicles before reversing course and limiting the increase to future orders. Its R1S SUV and R1T pickup EVs, on the other hand, have generally received favorable reviews.
This year’s problems include inflation, higher interest rates, and others. Other EV startups have also encountered difficulties. One example is Arrival, which had to put off developing an electric bus and car due to financial difficulties. Additionally, cash flow issues caused Faraday Future to postpone the launch of its first EV, the FF91.