By Michael Elkins
Mercedes-Benz Vans and electric vehicle manufacturer Rivian (NASDAQ:RIVN) announced Thursday that they have entered a Memorandum of Understanding to initiate a strategic partnership. The partnership aims to enable the companies to cooperate on the production of electric vans with the objective to set the standard in sustainable and all-electric transportation.
Once the companies obtain the relevant regulatory clearances and enter into the final binding agreements, Mercedes-Benz Vans and Rivian intend to establish a new joint venture manufacturing company with the purpose of investing in, and operating, a factory in Europe to produce large electric vans.
They will endeavor to produce two large vans, one based on VAN.EA, the electric-only platform of Mercedes‑Benz Vans, and the other based on the second generation electric-van, Rivian Light Van (RLV) platform. Further options for increased synergies from the joint venture will also be explored.
"Rivian was created to encourage the world to transition away from fossil fuel consumption by creating compelling products and services." Said Rivian’s CEO RJ Scaringe. "We’re delighted to be partnering with Mercedes‑Benz on this project. Mercedes‑Benz is one of the world’s best known and respected automotive companies, and we believe that together we will produce truly remarkable electric vans which will not only benefit our customers, but the planet."
Mathias Geisen, Head of Mercedes-Benz Vans commented "As a pioneer in the field of locally emission-free transportation Mercedes‑Benz Vans has gained broad experience in producing and launching eVans since 2010. Now we are accelerating the transformation to a fully electric product portfolio. From 2025 onwards, all vans based on our new architecture VAN.EA will be electric-only. I am delighted that as part of this transformation we are now joining forces with Rivian - a highly dynamic and inspiring partner with a strong technology position. We are sharing investments and technology because we also share the same strategic ambition: accelerating the electrification of the van market with sustainable and superior products for our customers."