Early September, Rivian and Mercedes-Benz announced a partnership to co-produce electric vans to provide customers with superior, sustainable options. The joint venture will focus on manufacturing customized large vans.
In the last few years, Rivian has managed to rise as a strong competitor to established players like Tesla in the electric vehicle segment. It will help Rivian Automotive leverage its superior technology with Benz’s market reach and know-how. The companies plan to share investment costs and pursue operational synergies.
Who owns Rivian?
Rivian is an electric automaker that was founded in 2009. Based in California, Rivian automotive raised over $13.5 billion with its public offering in 2021. At nearly $78 a share, the automaker’s IPO looked promising.
Since then, the company’s stock has tumbled and critics have questioned whether the automaker can keep the momentum going. However, despite minor roadblocks, it is important to strategize and innovate for growth. Many automakers are looking to dethrone the industry giant Tesla through strategic partnerships. One such example is General Motors and Honda, who have teamed up to build affordable EVs.
T Rowe Price Associates is the largest shareholder of Rivian Automotive with a18.2% stake, followed by Amazon with 17.7% stake. The company also has a deal with Amazon to produce electric delivery vehicles. At the time, Amazon CEO Andy Jassy stated, “Today marks a significant milestone in our Climate Pledge commitment. Rivian was one of the first companies Amazon invested in through the Climate Pledge Fund, and we’re just getting started on our journey to have 100,000 of Rivian’s vehicles on the road by 2030.”
The American company started delivering its first pickup truck R1T in late 2021.
Who has partnered with Rivian?
According to the Memorandum of Understanding, Rivian Automotive and Mercedes-Benz will establish a joint venture manufacturing company in central or eastern Europe.
Mathias Geisen, Head of Mercedes-Benz Vans said, “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.”
The Rivian and Mercedes-Benz deal will allow the American carmaker to manufacture high quality electric vehicles outside the US. As the joint venture is focused on producing vans, it will also give Rivian a chance to enter the unexplored van segment.
Two types of vans will be produced as a result of the Rivian and Mercedes-Benz deal. One based on VAN.EA (MB Vans Electric Architecture) the electric platform of Mercedes-Benz and another electric van based on the Rivian Light Van (RLV) platform. Both companies wish to rapidly scale production as they wish to meet sustainable goals while transforming the world with cleaner transportation.
RJ Scaringe, Chief Executive Officer of Rivian commented that the joint venture will help the world move away from fossil-fuel based transportation and make way for electric vans.
Experts predict that the Rivian and Mercedes-Benz partnership has good things in store for customers.
In recent times, automakers are pushing for innovation in the EV space. Despite rising costs of materials, automakers are keen to provide affordable EVs. Governments across the world have also offered subsidies and tax cuts with an aim to promote EV production and innovation. Ford wants to launch seven new EVs in Europe by 2024. Currently, Tesla leads the EV market in the US and has set up a Tesla gigafactory in Berlin, Germany.
