Mercedes, Rivian form a joint venture to build vans in Europe

Mercedes Benz and Rivian have recently signed a memorandum of understanding (MOU) to produce electric vans in Europe through a joint venture. The companies are set to erect their production plant in the region, and this will be a facility dedicated to building electric vehicles.

As per CNN Business, Mercedes Benz and Rivian will also shell out cash for the remodelling of an existing production facility owned by the former. The plant will be transformed into a place where they can effectively build new electric vans. This is expected to be fitted with the latest machines for EV production.

It was reported that the American electric vehicle automaker and automotive technology company agreed to deliver around 100,000 electric delivery vans to Amazon. Jeff Bezos’ company also owns 18% of Rivian.

Mercedes Benz is widely known around the world as a maker of luxury cars, but the automotive business industry is aware that the brand also produces commercial vans that are being supplied to various parts of the world. In fact, the German automotive firm was able to sell around 334,000 commercial vans last year.

It was said that over 9,000 of the total sold vans were electric. Moreover, Mercedes Benz is selling its gasoline and diesel-powered vans well, but its electric models, such as the eSprinter and EQV model, are considered best-sellers too.

At any rate, under the agreement between Mercedes Benz and Rivian, they will jointly produce two large vans. One of them will be made based on the former’s engineering while the other will feature the latter’s second-generation engineering.

While Mercedes and Rivian have already signed an MOU, they will still work out the details and other terms for a final agreement. The production at the JV’s new facility is set to begin in a few years, and the companies did not mention a specific time frame.

The joint venture will be focused on Europe, but Mercedes and Rivian’s collaboration in the United States is also possible. “We can tell you more as soon as the contract negotiations have been finalized,” The New York Times quoted Mercedes Benz Van’s chief, Mathias Geisen, as saying to the press on Thursday.