American electric car maker Rivian is teaming up with Mercedes-Benz to build a factory in Europe that will produce electric vehicles for both companies. The companies announced a memorandum of understanding on Thursday and plan to establish a joint venture to set up the plant within a few years.
The companies plan to produce two vans, one based on VAN.EA, the electric platform of Mercedes-Benz Vans, and the other on the platform of the second generation of electric vehicles, the Rivian Light Van.
Also Read: BMW X4 M Sport 50 Jahre M Edition launched in India priced at Rs 72.90 Lakhs.
Rivian now needs to move quickly to prove to investors that it can produce enough vehicles to meet demand. It will need to more than double production from its last quarter to reach its target of 25,000 units this year.
One thing that Rivian has delivered in abundance is hype. But it has long lost its title as America’s second most valuable car company, behind Tesla. Global markets, including the United States, have fallen this year on higher concerns. High growth, or potentially riskier, companies suffered the most. Shares of Rivian Automotive Inc. have decreased by 65 percent this year. Tesla is down 19%. Rivian shares rose 8% on Thursday.
Read all The latest automotive news and Latest news here