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Mercedes-Benz Vans, Rivian to form new JV to produce electric vans in Europe

The joint venture aims to build an all-new electric-only production facility leveraging an existing Mercedes-Benz site in Central/Eastern Europe.

Mercedes-Benz Rivian

Mercedes-Benz Vans, a full-range provider of electric private & commercial vans has signed a Memorandum of Understanding (MoU) with electric vehicle manufacturer Rivian to initiate a strategic partnership.

The partnership will enable the companies to cooperate on the production of electric vans.

Subject to the parties entering into final binding agreements and obtaining the relevant regulatory clearances, the partners intend to establish a new joint venture manufacturing company with the purpose of investing in, and operating, a factory in Europe to produce large electric vans for both Mercedes-Benz Vans and Rivian, starting in a few years.

The aim is to build an all-new electric-only production facility leveraging an existing Mercedes-Benz site in Central/Eastern Europe.

They envision production-optimised vehicle designs for efficient manufacturing on common assembly lines. They will produce two large vans, one based on VAN.EA (MB Vans Electric Architecture), the electric-only platform of Mercedes-Benz Vans, and the other based on the second generation electric-van, Rivian Light Van (RLV) platform. Further options for increased synergies from the joint venture will also be explored.

The JV mirrors the common objectives of Mercedes-Benz Vans and Rivian: both companies plan to rapidly scale the production of electric vans to help the world transition to cleaner transportation. By working together, they will be able to leverage operations synergies and substantially increase cost efficiency to help make the vans more affordable for commercial customers driven by total cost of ownership.

RJ Scaringe, CEO, Rivian said, “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.”

Mathias Geisen, Head of Mercedes-Benz Van said, “As a pioneer in the field of locally emission-free transportation Mercedes-Benz Vans has gained broad experience in producing and launching eVans since 2010. Now we are accelerating the transformation to a fully electric product portfolio. From 2025 onwards, all vans based on our new architecture VAN.EA will be electric-only.”

“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,” added Geisen.

Also read: Vehicles above Rs 1 crore constitute 30 percent of Mercedes-Benz sales in India

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