Electric vehicle maker Rivian Automotive said on Monday it would not go ahead 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 return on our capital investments. At this time, we believe that 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, Chief Executive Officer of Rivian.
shares had jumped 11% when the Mercedes deal was first announced.
Rivian shares have fallen 74% this year.
says it will continue to push for electrification of its vans. It said plans to expand its electric vehicle production site in Jawor, Poland, were not affected.
“We will continue with full speed and determination to increase production of electric vehicles at our first dedicated electric van plant – designed for maximum flexibility and productivity. Exploring strategic opportunities with the Rivian team in the future remains an option as we share the same strategic ambition: to accelerate EV adoption with benchmark products for our customers,” said Matthias Geisen, Head of Mercedes-Benz Vans.
Mercedes shares fell 1%.