Rivian terminates its agreement with Mercedes-Benz to produce electric vans in Europe

Rivian, an American electric vehicle maker, stated Monday that it is abandoning ambitions to begin manufacturing electric commercial vans in Europe.

Back in September, the business publicly said that it would “no longer pursue” its arrangement with Mercedes-Benz. Rivian CEO RJ Scaringe stated that his organisation is looking for the best risk-adjusted returns on capital investments.

This comes as the company attempts to achieve cash flow positive operations in its US operations. Mercedes-Benz Vehicles will invest more than a billion euros ($1.05 billion) in the development of its first all-electric vans.

 

Rivian is one of many firms aiming to profit on the growing demand for commercial electric vans. Amazon, the company’s largest investor, has agreed to buy 100,000 electric delivery vehicles from it.