Iveco takes ownership of Nikola joint venture and updates EV strategy

Iveco said its partnership with battery electric vehicle manufacturer Nikola has entered a new phase, with each business now keen to focus their own attention on heavy-duty transport.

The Italian OEM and Nikola formed a joint venture in 2019 in order to deploy zero-emission trucks in North America and Europe.

However, Iveco Group said it would be concentrating on Europe for further development and commercialisation of its own battery electric and fuel cell electric vehicles (FCEVs) and Nikola would focus its operations in North America.

The deal will cost Iveco $35m and buys out Nikola from European markets.

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In a statement, Iveco said: “Iveco Group will assume full ownership of the joint venture in Ulm, Germany.
“Also, Iveco Group will be licensed to freely access and continue developing vehicle control software for the jointly developed BEV and FCEV.

“Nikola will be granted the IVECO S-Way technology license for North America and related component supply from Iveco Group, and will gain joint ownership of the intellectual property of Generation 1 eAxles, technology developed together with Iveco Group’s powertrain brand, FPT Industrial.”

Iveco added: “Despite the negative cash impact generated, Iveco Group forecasts to absorb it with cash flow generation and therefore this does not change its cash flow target for 2023; it will also retain a meaningful amount of Nikola shares.”

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