An Amazon Rivian electrical shipment van at the business’s production center in Normal, Illinois, US., on Monday, April 11, 2022.
Jamie Kelter Davis|Bloomberg|Getty Images
Rivian stated Monday it was stopping briefly strategies to make electrical industrial vans in Europe and would “no longer pursue” the contract it made with Mercedes-Benz simply 3 months back.
“We’ve decided to pause discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year for joint production of electric vans in Europe,” Rivian CEO RJ Scaringe stated, keeping in mind the business was pursuing “the best risk-adjusted returns” on its capital expense.
“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,” he included.
The U.S.-based electrical lorry maker stated it stays available to checking out future deal with Mercedes-Benz “at a more appropriate time for Rivian.” The business signed their initial memorandum of understanding in September.
Mercedes-Benz stated Rivian’s choice would not affect the timeline of its electrification technique or the prepared ramp-up of its brand-new electrical lorry making website in Jawor, Poland.
“Exploring strategic opportunities with the team at Rivian in the future remains an option,” Mathias Geisen, the head of Mercedes-Benz Vans, stated.
Monday’s news comes at a time when the European Union has actually raised issues about the United States’ Inflation Reduction Act, which was signed into law by President Joe Biden in August.
According to the Department of Energy, the INDIVIDUAL RETIREMENT ACCOUNT “represents a historic, $369 billion investment in the modernization of the American energy system.”
Among other things, the individual retirement account includes a tax credit for electrical lorries whose last assembly occurs in North America, which might represent a huge obstacle to European carmakers in the years ahead.
A significant political and financial bloc including 27 nations, the EU is preparing to phase out the sale of brand-new diesel and gas automobiles and vans.
— CNBC’s Silvia Amaro added to this report
