Renault is teaming up with fellow carmaker Volvo and the shipping group CMA CGM to advance an electric van project aimed at strengthening its position in the thriving electric vehicle market.
Renault and Volvo have inked binding agreements to establish a new company, with each initially holding a 50% equity stake and committing to invest 300 million euros (USD 316 million) over the next three years, as announced in a joint statement.
CMA CGM, on the other hand, has signed a non-binding letter of intent with Renault and Volvo to join the new company and invest 120 million euros through PULSE, its energy fund that focuses on decarbonizing the transport and logistics sectors.
Renault has been working on a plan to introduce a new electric van in 2026 for the Renault and Nissan brands. Sources indicated earlier this year that the project might include the Volvo-owned brand Renault Trucks, while Mercedes Benz Group, a long-time partner of Renault in the van segment, will not be part of the project.
The launch of the joint venture between Renault and Volvo is anticipated in early 2024, pending regulatory approval processes, with CMA CGM set to join the new company subsequently.
Production of the electric vans is scheduled to commence in 2026, and the future company will be headquartered in France. Details about CMA CGM’s stake in the venture and the timing of its participation were not disclosed.
Renault and Volvo plan to continue seeking additional investment and business partners to further develop the project.
The companies noted that the market for electric vans in Europe is expected to triple in size by 2030. They aim to reduce overall usage costs for logistics customers by 30% through the “Software Defined Vehicle” design.
CMA CGM, which has recently made significant investments in non-maritime transport, will play a crucial role in adapting the design to meet the requirements of logistics firms and provide supply chain support.
