Categories: World News

Mercedes-Benz, Rivian accomplice for EV business automobiles in Europe

Production of Amazon electric delivery trucks on April 11, 2022 at Rivian’s facility in Normal, Illinois.

Michael Wayland/CNBC

Mercedes-Benz and Rivian announced on Thursday that they are planning a joint venture to build large, electric commercial vehicles for both brands.

The companies plan to produce two different EV vans — one for each automaker — on a shared assembly line, they said. The idea is to reduce costs for both companies by sharing investments, technology and suppliers.

They plan to build a new all-electric manufacturing facility at an existing Mercedes-Benz factory site in Central or Eastern Europe, with production slated to begin in “a couple of years,” the two companies said in a statement.

“Mercedes‑Benz Vans has gained extensive experience in the production and market launch of eVans since 2010. Now we are accelerating the transformation towards an all-electric product portfolio,” said Mathias Geisen, Head of Mercedes Commercial Vans. “We share investments and technology [with Rivian] because we also share the same strategic goal: to accelerate the electrification of the van market with sustainable and superior products for our customers.”

While Mercedes-Benz has been building commercial vehicles for many years and electric vans for more than a decade, Rivian is a newcomer to the segment. The California-based EV startup began manufacturing EV pickup trucks for Amazon earlier this year, just months after it began producing its own high-end electric pickups and SUVs at its Illinois factory.

Read more about electric vehicles from CNBC Pro

Although the vans that Mercedes and Rivian will eventually build will likely be similar, they will have different designs: Mercedes will be based on its forthcoming new EV van architecture, due to debut in 2025; Rivian relies on the next-generation version of the light van platform it developed for Amazon.

Correction: This story has been updated to correct that Rivian is based in California.

Jimmy Page

MV Telegraph Writer Jimmy Page has been writing for all these 37 years.

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