Swedish automaker Volvo (OTC:VLVLY) Group and French automaker Renault (EPA:RENA) Group have announced a joint venture with French logistics operator CMA CGM to develop electric vans. The partnership will involve an investment of €300 million ($316.5 million) from Volvo and Renault, securing them a 50% stake in the enterprise. CMA CGM is set to contribute €120 million to the project. The alliance is currently seeking additional partners and investments.
The venture, led by CEOs Martin Lundstedt of Volvo Group and Luca de Meo of Renault Group, aims to establish an independent company that will operate with the agility of a start-up. The new company, which will be based in France, is expected to commence operations in 2024, pending regulatory approval.
This initiative aligns with Renault's vision for a revolution in the Light Commercial Vehicle (LCV) market. The electric vans are slated for production in 2026 and will be built on a fully electric LCV skateboard platform. This design aims to ensure high modularity, safety, and cost-effectiveness. Furthermore, the vehicles will incorporate Software Defined Vehicle architecture for superior monitoring of delivery activity and business performance enhancement, aiming at a 30% reduction in usage costs for logistics players.
The venture builds upon Volvo and Renault's shared investments in research and development over their 35-year collaboration that produced successful models like the Renault Master and Trafic commercial vehicles. This new enterprise represents both companies' commitment to offer complete transport solutions and signifies a potential partnership with the CMA CGM Group.
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