Stockholm—Volvo, Renault, and CMA CGM have joined forces to develop a new generation of electric vans. Their goal is to decarbonize the transport and logistics sector while addressing the rapid growth of e-commerce and rental businesses.
Volvo, a Swedish truck maker, and Renault, a French auto group, are set to establish a new company. Both companies will invest €300 million ($316.5 million) each over the next three years, resulting in an equal 50% share. Shipping and logistics company CMA CGM also plans to join the venture with an investment of €120 million. Volvo and Renault will actively seek additional investment and business partners.
The new vehicles will be built on a fully-electric platform and will offer various body options. They will feature advanced connected software that enables monitoring of delivery activity and user business performance, according to a joint statement released by the companies.
Subject to regulatory approval, the creation of the new company is expected in early 2024. Production of a new family of fully-electric and software-defined vehicles is projected to commence in 2026.
Volvo CEO Martin Lundstedt emphasized the importance of partnership and collaboration in meeting the growing demand for clean, efficient, and safe urban transportation.
The new company will operate under its own corporate identity and be based in France.