MBG MercedesBenz Group AG

By Will Feuer

Electric carmaker Rivian Automotive Inc. has signed a memorandum of understanding with a Mercedes-Benz Group AG unit to partner on the production of electric vans, the companies said Thursday.

The companies said they intend to establish a new joint venture manufacturing company to invest in and operate a factory in Europe to produce large electric vans for both Mercedes-Benz Vans and Rivian starting in a few years. The planned electric-only production facility would leverage an existing Mercedes site in Central or Eastern Europe, the companies said.

The collaboration is expected to lower costs for the two companies, allowing them to make the vans more affordable for commercial customers, the companies said.

"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.

Shares of Rivian rose more than 9%, to $36.31, a share in premarket trading. So far this year, the stock has fallen almost 68%.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

September 08, 2022 09:34 ET (13:34 GMT)

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