Mercedes-Benz and Rivian announced the two companies are forming a strategic partnership to produce electric vans in Europe.
The two companies signed a Memorandum of Understanding subject to final, binding agreements and regulatory clearances.
The companies plan to establish a new joint venture to invest in and operate a European factory.
The European-based factory will be a standalone all-electric facility co-located in Central or Eastern Europe at an existing Mercedes site.
The goal of the joint venture will be producing two vans for the European market.
One on the MB Vans Electric Architecture, the other on the Rivian Light Van platform.
The two companies hope by combining expertise, they can drive down the cost and find synergies to better the technology.
Head of Mercedes-Benz Vans, Mathias Geisen, had this to say on the new partnership:
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.
While CEO of Rivian, Ryan Scaringe had this to say:
Rivian was created to encourage the world to transition away from fossil fuel consumption by creating compelling products and services. 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.
Neither company confirmed a timeline for the formation of the joint venture, but we would expect paperwork to be through by the end of the year.