Mercedes-Benz, a full-range provider of electric private and commercial vans, and electric vehicle (EV) manufacturer Rivian, recently announced the signing of a Memorandum of Understanding to initiate a strategic partnership that will enable the companies to cooperate on producing electric vans—and to set the standard in sustainable and all-electric transportation.
The planned joint venture will produce bespoke large electric vans for the two EV manufacturers. The two companies look to leverage shared investments and shared costs and will pursue operational synergies to scale electric van production rapidly. It will also explore further options for increased synergies from the joint venture.
“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,” said Mathias Geisen, head of Mercedes-Benz Vans.
Subject to the parties entering into final, binding agreements and obtaining the relevant regulatory clearances, the companies intend to establish a new joint venture manufacturing company to invest in and operate. It will be a European factory to produce large electric vans for Mercedes-Benz Vans and Rivian, starting in a few years. The target is to build an all-new electric-only production facility leveraging an existing Mercedes-Benz site in Central/Eastern Europe.
The two companies also envisage production-optimized vehicle designs for efficient manufacturing on standard assembly lines. They will aim to produce two large vans, one based on VAN.EA (MB Vans Electric Architecture), the electric-only platform of Mercedes-Benz Vans, and the other is based on the second generation electric-van, Rivian Light Van (RLV) platform.
“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 benefit not only our customers but the planet,” said RJ Scaringe, chief executive officer of Rivian.
The joint venture 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 can leverage operations synergies and substantially increase cost efficiency to help make the vans more affordable for commercial customers driven by the total cost of ownership.
Mercedes-Benz Vans has firmly anchored its leadership aspiration for electric mobility in its strategy. With Vito E-Cell in 2010, Mercedes-Benz Vans was a pioneer in the field of locally emission-free transporters. Today, customers can choose from four battery-electric driven vans: the eVito Panel Van, the eSprinter, the eVito Tourer, and the EQV. The van portfolio will soon be electrified entirely with the new eCitan and the upcoming EQT. The next generation eSprinter will be launched in 2023.
From the middle of the decade, Mercedes-Benz Vans implements the next stage in its electrification strategy with VAN.EA (MB Vans Electric Architecture). Starting in 2025, all mid-size and large vans will be electric-only based on the new modular architecture.
Meanwhile, Rivian is building a brand and product portfolio to maximize impact in the shift to carbon-neutral transportation. The R1T, R1S, and Electric Delivery Van (EDV) last-mile delivery vans are Rivian’s first vehicles in the consumer and commercial space. The R1T and R1S are flagship products for Rivian, uniquely combining performance, utility, and efficiency.
On the commercial side, Rivian launched the EDV, designed and engineered by Rivian in collaboration with Amazon, as an anchor product to combat climate change at scale in the fleet market. Rivian also has a bespoke fleet management tool – FleetOS. FleetOS is designed to simplify the commercial experience around centralized fleet management and ownership. Rivian expects FleetOS to drive improved total cost of ownership and utilization across the entire vehicle lifecycle. (Story and photos courtesy of Mercedes-Benz US)