Iveco takes full ownership of JV with Nikola on electric, hybrid trucks (updated)
09/05/2023 08:01
(Adds details from statements, context)
MILAN, May 9 (Reuters) - Italy's Iveco Group IVG.MI
has agreed to buy the full ownership of its joint venture with
U.S. start-up Nikola NKLA.O developing battery electric and
fuel cell heavy-duty trucks for 44 million euros ($48 million),
it said on Tuesday.
Iveco, which at that time was part of CNH Industrial
CNHI.MI group, and Nikola formed the joint venture, based in
Ulm, Germany, in 2019 to help the Italian truckmaker, a
latecomer to electrification, catch up with large European
rivals such as Daimler Truck DTGGe.DE or Volvo VOLVb.ST .
Battery electric (BEV) trucks developed by the JV are
already circulating in the U.S., while orders are being
collected in Europe. Fuel cell hydrogen hybrid (FCEV) trucks are
expected to hit the road next year.
As part of the agreement announced on Tuesday, Iveco will
focus on Europe for the further development and
commercialisation of its own battery electric and fuel cell
electric trucks, while Nikola will concentrate its operations in
North America, the two groups said in a joint statement.
Iveco will also have free access to and continue developing
vehicle control software for the jointly developed BEVs and
FCEVs. Nikola will be granted Iveco's technology licence for
North America and related component supply, the added.
Iveco's overall investment, through available liquidity,
will be partly in cash, for $35 million, and partly in shares,
with the purchase of 20 million Nikola shares.
The Italian truckmaker said in a separate statement that the
deal would produce a 44 million euro one-off negative impact on
its first-quarter income statement that it expected to absorb
through cash flow generation, without changing its cash flow
target for this year.
Iveco will report its first-quarter data on Thursday.
($1 = 0.9084 euros)
(Reporting by Giulio Piovaccari, editing by Gavin Jones and
Louise Heavens)
((giulio.piovaccari@thomsonreuters.com))