Renault (EPA:RENA) has teamed up with Volvo (OTC:VLVLY) and shipping group CMA CGM to collaborate on an electric van project in an effort to strengthen the French automaker’s position in the rapidly growing electric vehicle market.
Renault and Volvo have formalized their partnership by entering into binding agreements to establish a new company. Initially, both companies will hold a 50% equity stake in this venture and commit to investing €300 million ($316 million) each over the next three years, as stated in their joint announcement on Friday.
CMA CGM also signed a letter of intent with Renault and Volvo and has expressed their intention to join the new company and invest 120 million euros through PULSE, its energy fund that focuses on promoting decarbonization within the transport and logistics sectors.
Renault has been actively developing a strategy to introduce a new electric van in 2026, which will be available under the Renault and Nissan (OTC:NSANY) brands.
The anticipated launch of the joint venture between Renault and Volvo is slated for early 2024, pending the completion of necessary regulatory approval processes. Following this, CMA CGM is expected to become a part of the new company.
Production of these electric vans is scheduled to begin in 2026, and the headquarters of the newly formed entity will be based in France.