Volvo Group, Renault Group and CMA CGM Group are partnering to deliver an all-new generation of electric vans and associated services. Renault Group and Volvo Group have signed binding agreements to launch a new company in which they will initially hold respective 50-50 equity stakes.

The two plan to invest €300 million each over the course of the next three years. CMA CGM for its part signed a non-binding letter of intent with Renault Group and Volvo Group to join the new company, and will invest €120 million through PULSE, its Energy Fund dedicated to accelerating the decarbonization of transport and logistics sectors.

The creation of the new company is expected early 2024 and remains subject to the completion of all regulatory approval processes. The future company is planned to operate under its own corporate identity and will be based in France.

The new company will introduce an all-new family of fully electric and software-defined vehicles (SDVs); production is planned to start in 2026. The vehicles will be built on a new fully electric LCV skateboard platform that will offer high modularity for different body types at low cost and breakthrough on safety requirements.

Adopting the new Software Defined Vehicle architecture, the vehicle will onboard unprecedent capabilities to monitor the delivery activity and user business performance, reducing the global cost of usage for the logistic players with 30%. The connected services enabled by the software-defined vehicle technology will offer to the customers up to date vehicles all lifelong. The van itself will offer outstanding compacity for urban mobility, high polyvalence for tailor made solutions, different battery capacities with unprecedent 800V feature for vans.

The new company will be fully independent, combining the agility of a start-up with the strong backbone of its industry-leading partners. Renault Group and Volvo Group aim to share investments in research and development and bring benefit of existing know-how, services, and industrial footprint to the new planned company.

As a global champion of Light Commercial Vehicle and innovative leader in electric vehicle, Renault Group will bring the know how to develop and manufacture at scale the electric platform that will onboard its first Software Defined Vehicle architecture.

Volvo Group is a global leader in trucks with a strong customer base of professional logistic companies, a global service network, and a wide experience in uptime and productivity services. Such services will, in combination with the innovative vehicle platform, contribute to a full solution for decarbonized urban logistics.

As a global player on all segments of the supply chain, CMA CGM will assist the new company in building appropriate solutions that can fit all transport and supply chain player’s needs, based on end-to-end efficient solutions. CMA CGM will also bring its know-how of a world logistic player, improving the solutions and B2B offers that will address the needs of all logistic players.

This project was submitted in response to a France 2030 call for projects, in line with the objectives of innovation and electrification.

By 2030, the European market for electrified vans will triple, promising a huge opportunity for a brand-new LCV offer, particularly addressing booming e-commerce and rental businesses.