Volvo and Renault are launching a new company to supply clean electric vans to the logistics industry.
The two heavyweights will be teaming up with French logistics specialist CMA CGM in a joint venture that will continue to enlist more business partners and greater investment ahead of production starting in 2026.
The electric LCV vehicles, which will be built on an innovative skateboard platform, are set to be both versatile in terms of body styles and cost-effective, as well as providing enhanced safety.
Detailed monitoring of business performance and delivery processes will be enabled via the Software Defined Vehicle Architecture, which allows access to embedded connected services which could reduce overall usage costs for businesses by as much as 30%.
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There are also promises of varied battery capacities, super-fast charging capability, customisable options for those with specific requirements, and an advanced, compact city design.
The new company will be fully independent with the agility of a start-up company but also able to tap into the wealth of knowledge available within its respective parents at Renault Group and Volvo Group.
Investments in research and development will be shared between Renault and Volvo, and each will lend experience and existing services to the project, including the ability to base the new company on an effective and efficient business model.
As an LCV and electric vehicle innovation expert, Renault will lead the development and large-scale production of the electric platform and the vehicle's connection with the logistics sector. With vast experience in truck manufacturing with professional logistics clients and managing an extensive service network, Volvo will be able to offer comprehensive solutions for eco-friendly urban logistics.
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CMA CGM, as a key player in the supply chain, will be able to guide the new company in developing solutions that address the needs of the transport and supply chain sectors, emphasising efficiency at each step.
Martin Lundstedt, president and CEO of Volvo Group, said: "We are excited to take yet another step in our journey towards sustainable transport solutions through the intended establishment of a new company. Volvo Group is keen to continue to offer its customers complete transport solutions that help them decarbonise their value chains. We see a growing demand for clean, efficient, and safe urban transportation and partnership and collaboration is key to achieve this."
Luca de Meo, CEO of Renault Group, added: "Electrification and digitalisation are paving the way for a revolution in the LCV market. Renault Group intends to lead this transformation while ensuring a robust and effective value creation. Today, we are very proud to embark in this journey with Volvo Group to bring the best of solutions to our professional customers. We also look forward to CMA CGM joining the company. The new company is the start-up minded, unmatched combination of the complementary assets of three champions: a leading truck maker, expert in tailored services, a champion of the global supply chains, and a European EV pioneer & LCV leader. All the ingredients are there to come up with something truly unique."
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said: "As a leader in transport and logistics, the CMA CGM Group is proud to join forces with a major European carmaker and a leading global truck maker, Renault Group and Volvo Group, to create this new company of electric vans. This is a comprehensive and innovative partnership: not only are we investing in this project, but we will also bring our know-how and expertise to ensure inbound and outbound logistics, while some of these vehicles could ultimately be used to decarbonise our fleet. Through this new investment by our PULSE Fund in electric mobility, we are pursuing our commitment to accelerate the decarbonisation of our activity and our sector."
The venture is expected to start operations in 2024, subject to regulatory approval processes, with manufacturing not expected until at least 2026. CMA CGM will come on board a little later, subject to similar approvals. The company will operate under its own identity and be based in France.
Volvo, owner of the Renault Trucks brand, has manufactured LCVs for 35 years and currently produces the Renault Trucks Master and Trafic vans. Renault has also previously operated LCV manufacturing facilities jointly with GM, building the Renault Trafic-based Vauxhall Vivaro at its Luton plant.
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