London, Dec 13 Electric car-maker Rivian has put a pause on plans to co-develop multiple new electric delivery vans with luxury German automaker Mercedes-Benz.
Rivian was concerned about spending a lot of money on an expensive new vehicle development project amid a slowing economy, reports The Verge.
"At this point in time, we believe focusing on our consumer business, as well as our existing commercial business, represent the most attractive near-term opportunities to maximize value," RJ Scaringe, CEO, Rivian, said in a statement.
The companies were supposed to build the vehicles together at a manufacturing site in Europe, but the German automaker is not going to pause its own plans.
"The ramp-up plan for our new EV manufacturing site in Jawor, Poland is not affected," said Mathias Geisen, head of vans, Mercedes-Benz.
"We will continue with full speed and determination to scale up electric vehicle production in our first dedicated electric van plant," he added.
In September, Mercedes-Benz and Rivian had signed a memorandum of understanding for a joint venture to build large commercial electric vans, the report said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor