French OEM Renault and Swedish multinational Volvo Group have received regulatory approval to launch a new joint company which will produce electric vans.
The company — which will be known as Flexis SAS — will begin production of the new vans in 2026, and was initially announced after the two OEMs signed a non-binding agreement in October last year.
The two automakers will invest €300mn ($325.7mn) each into the project over the course of the next three years.
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"Following the joint venture binding agreements signed on 6 October, Renault Group and Volvo Group have obtained the required regulatory approvals to officially launch the new company for the next generation of fully electric vans based on a software defined vehicle (SDV) platform and its dedicated services," a joint press release says.
Renault says the new company will be based in France and will address the "growing needs of decarbonised and efficient urban logistics".
Logistics firm CMA CGM has also taken a €120mn stake in the JV through Pulse, its €1.5bn investment fund aimed at decarbonising of the logistics value chain.
“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,” CMA CGM CEO Rodolphe Saade saidwhen the deal was signed in October.
Volvo Group and Renault have struck partnerships in the past, most notably with Volvo buying the French OEM's Renault Trucks subsidiary in 2001.
Ciaran has written about finance, politics and culture. He is passionate about e-mobility and what it means for our way of life.
Ciaran has a Masters in Ancient Philosophy from Oxford University.
