IVECO and Chinese commercial vehicle manufacturer Foton have signed a Memorandum of Understanding to explore potential collaboration in the areas of electric vehicles and components, and joint business opportunities, for Europe and South America.
Foton shares the same commitment with Iveco Group to 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 potential cooperation will also support Foton to further advance its globalisation strategy.
The partnership is part of Iveco Group’s overarching electrification strategy to extend its light commercial vehicle line-up to the Gross Vehicle Weight category that falls below the iconic DAILY range of GVW 3.5 – 7.2 tonnes, adding both chassis cab and panel van all-electric models under the GVW 3.5-tonne threshold.
With Foton, 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. The future panel van will potentially positively impact the regional and local supply chains in Europe and South America, in addition to further supporting the growth of the IVECO point of sales and workshop network.
Earlier this year, Iveco Group also signed a supply agreement with Hyundai Motor Company for an electric GVW 2.5 – 3.5-tonne chassis cab to be sold and serviced in Europe by IVECO. Iveco Group’s collaborations with Foton and Hyundai aim to create a comprehensive line-up of electric commercial vehicle offerings weighing less than its iconic DAILY.
The MoU between Iveco Group and Foton is also opening the two companies to joint exploration of additional future synergies, including the possible localisation of activities in Europe and South America, to be evaluated at a later stage. Supply opportunities including through Iveco Group’s powertrain brand FPT Industrial, will also be discussed.
