PARIS (Reuters) – Renault will collaborate with Volvo and shipping group CMA CGM on an electric van project aimed at strengthening Renault’s position in the thriving electric vehicle market.
Renault and Volvo have signed binding agreements to establish a new company, in which each company will initially hold a 50% equity stake and invest 300 million euros ($316 million) over the next three years, as stated in a joint statement on Friday.
CMA CGM has signed a non-binding letter of intent to join the new company and invest 120 million euros through PULSE, its energy fund focused on decarbonization of the transport and logistics sectors, alongside Renault and Volvo.
Renault has been developing a plan to launch a new electric van in 2026 for the Renault and Nissan brands. Sources have previously mentioned that Volvo-owned brand Renault Trucks may also join the project, while Mercedes Benz Group, a long-time van partner of Renault, will not be participating.
The launch of the joint venture between Renault and Volvo is expected in early 2024, pending regulatory approval. CMA CGM is set to enter the new company at a later stage, according to the partners.
Production is anticipated to commence in 2026, and the new company will be headquartered in France.
No further details have been provided on CMA CGM’s timing of entry or its stake in the venture.
Renault and Volvo will continue to seek additional investment and business partners, as mentioned in their statement.
According to the companies, the market for electric vans in Europe is projected to triple in size by 2030. They also noted that their future vans would bring a 30% reduction in overall usage costs for logistics customers through “Software Defined Vehicle” design.
CMA CGM, which has made significant investments in non-maritime transport in recent years, will assist in adapting the design to meet the needs of logistics companies and provide supply chain support.
($1 = 0.9480 euros)
(Reporting by Dominique Vidalon, Gus Trompiz and Gilles Gillaume; Editing by Elaine Hardcastle and Mark Potter)
Credit: The Star : Tech Feed
