Iveco and Chinese manufacturer Foton are teaming up to explore a potential collaboration on electric commercial vehicles.
The two firms have signed a Memorandum of Understanding (MoU) to investigate opportunities in the areas of electric vehicles and components, and joint business opportunities, for Europe and South America.
Under the collaboration with Foton, which is part of BAIC Group in China, Iveco Group will investigate the option of utilising the Iveco sales channels for the commercialisation of an electric panel van in Europe and South America in the lightest category of up to GVW 3.5 tonnes.
This partnership supports the group’s electrification strategy to extend its light commercial vehicle line-up below the Daily range of 3.5 to 7.5 tonnes GVW, adding both chassis cab and panel van all-electric models under the 3.5-tonne GVW threshold.
Earlier this year, Iveco Group also signed an agreement with Hyundai Motor Company that will see Hyundai supply Iveco with an electric 2.5 to 3.5-tonne chassis cab that will be sold and serviced in Europe by Iveco.
Foton said the potential cooperation would help it “promote the green transformation of the global automotive industry, pursuing multiple routes through new energy technologies such as pure electricity, hybrid, and hydrogen fuel cells for commercial vehicles”. The tie-up will also support the Chinese OEM to further advance its globalisation strategy.
The MoU between the two companies also enables future joint exploration of additional future synergies, including the possible localisation of activities in Europe and South America. Supply opportunities including through Iveco Group’s powertrain brand FPT Industrial, will also be discussed.
