The world is more sensitive to climate change than it was ever before. There is pressure on automakers to build efficient electric cars. Developed countries plan on increasing the use of electric vehicles in the coming future. Europe and France aim on replacing fuel cars with Electric cars by 2040. Electric cars are expensive but they reduce carbon footprints substantially. They reduce fuel costs and are more efficient.
Car companies are now trying to build better alternatives for fuel cars to pacify climate change. Similarly, Mercedes-Benz and Rivian have partnered together to build electric vans in Europe. The partnership will enhance their manufacturing capacities and capabilities. They aim to bring the skillset and capital potential to harness their potential. However, if you are doing automotive engineering but struggling with your dissertation, and wish Someone Write My Dissertation For Me UK then feel free to ask us and we will be there at your service.
Mercedes-Benz and Rivian are Set to build Electric Vans
Mercedes-Benz and Rivian are partnering to build large commercial electric vans. Both companies will form 2 Electric vans, one for each of them. The aim is to share the technologies, expertise, and resources to reduce costs. They have signed a memorandum of understanding and are planning to build the EV on a joint assembly line. Although, both the vans that Mercedes-Benz and Rivianwill manufacture will likely be the same but will have different designs. The Mercedes EV will be based on its new EV architecture design which is set to launch in 2025. The production will start in a few years at the Mercedes production line in Eastern or Central Europe.
Mercedes-Benz and Rivian Joint Potential
Last year, Rivian which is a California-based startup started manufacturing EV delivery vans for Amazon recently. Just a few months back it was manufacturing its own electric pickups and SUVs. Mercedes have a lot of expertise and experience while Rivian has new technology when it comes to electric mobility.
Geisen, the head of Mercedes Benz vans, said that they are already cooperating with Renault and Nissan on small electric vans. However, he expressed that both of the companies are in different vehicle segments so they do not affect their collaboration with Reiven.
Rivian is in tough competition for manufacturing electric vans with the renowned automakers; Ford and General Motors. The collaboration with Mercedes should help Rivian which lost $1.2 billion. It plans to conserve money for its new assembly plant which it plans to build in 2025 in the USA.
Mercedes and Rivian collaboration came up at a crucial time. Due to the rising product cost and supply disruptions, Mercedes had to reduce staff and delay product programs. While, the shares of Rivian were down by 68%, this year. The CEO of Rivian, RJ Scaringe said that they believe both companies can manufacture brilliant electric vans. The collaboration will not only benefit their customers but the whole planet. The shares of Rivian grew 10% with the news of their collaboration with the giant German company, Mercedes Benz.
Rivian Emerging as Electric Automaker
The future of electric vehicles is promising. Many countries are already set to replace combustion engines with electric ones. There is a lot of opportunity for Rivian to excel based on its capabilities. Now, the collaboration with the giant Mercedes Benz will allow it to further improve its brand image in the market. Rivian is currently in a contract with Amazon to deliver 100000 electric delivery vans. Which were to be completed in the year 2024. However, Amazon now wants those till 2030. The first few electric delivery vans have arrived in different cities in the USA for testing. Also, Rivian plans to sell the electric vans to other companies in 2023. Rivian is building a brand intending to shift to carbon-neutral transportation.
The Reputation of Mercedes Benz
Mercedes Benz has made a reputation for its leadership aspiration in electric mobility in its strategy. In 2010, Mercedes-Benz vans were ranked as the pioneer in emission-free transporters. Today, Mercedes Benz provides 4 battery-electric driven vans and is set to launch the next generation sprinter in 2023. Mercedes Benz wants to keep its position as the only large van manufacturer in Germany.
Both companies will be making 2 different electric van models. One will be based on the Mercedes Vans Electric Architecture (VAN.EA) design while Rivian’s EV will be based on a second-generation electric van platform, called Rivian Light Van (RLV). Mercedes has experience of 2 decades in making electric vans while Rivian has all the necessary technological expertise. Rivian also has young-minded staff who have an eye for change and innovation.
Increasing Demand for the Electric Vans
Due to the increasing supply chain practices, electric vans are in high use around the globe. The production of a new efficient electric van between these 2 companies can prove to be a major change in the mobility industry. An efficient electric van could reduce the carbon and nitrogen footprints substantially. Also, these vans could be more smooth and more cost-effective. Moreover, the government incentivizes the use of electric vehicles and also not charge road tax. The demand for electric vans in the future is growing. The manufacturing of such vehicles can change the course of the future automobile industry.
Both the companies haven’t told the time for the start of the production. The ambiguous time gives both manufacturers the time to plan. Rivian has a reputation for having strong technology. It can use the resources to build highly efficient electric cars. Both giants can add to their expertise to give a masterpiece. All eyes are on them but the unambiguous timeline means they have all the time to plan and re-plan. Also, they can both create synergies by collaborating on other platforms as well. However, if you are an automotive engineering enthusiast, or a student and currently struggling with your dissertation then you can feel free to request someone Write My Dissertation For Me UK and we will connect you with our expert writers.