Electric vehicle maker Rivian Automotive on Monday said it won’t go forward with a plan to make electric vans in Europe with Mercedes-Benz, just three months after agreeing to the pact.
“As we evaluate growth opportunities, we pursue the best risk-adjusted returns on our capital investments. 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,” said RJ Scaringe, CEO of Rivian.
Rivian RIVN, -4.51% shares had jumped 11% when the Mercedes deal was first announced.
Rivian shares fell 5% in premarket trade, and during 2022, have tumbled 74%.
Mercedes-Benz MBG, -1.11% says it will continue to pursue the electrification of its vans. It said the ramp-up plan for its EV manufacturing site in Jawor, Poland is not affected.
“We will continue with full speed and determination to scale up electric vehicle production in our first dedicated electric van plant – designed for maximum flexibility and productivity. 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 Mercedes-Benz Vans.
Mercedes shares slipped 1%.