Volvo Group and Westport Fuel Systems announced the closing and launch of their previously announced joint venture transaction. (Earlier post.)

The joint venture is committed to accelerating the commercialization and global adoption of Westport’s HPDI fuel system technology for long-haul and off-road applications. The joint venture will be led, on an interim basis, by Dan Sceli, Chief Executive Officer of Westport in addition to Scott Baker who will take on the role of Vice President, Product Development and Technology Officer and Anders Johansson who will be Vice President and Commercial Officer. The joint venture will be headquartered in Vancouver, Canada.

As part of the agreement, three of the joint venture’s board members have been appointed by each of Westport and the Volvo Group. These initial board members are Andrea Fuder, Chief Purchasing Officer Volvo Group; Dan Hancock, Chair of the Board of Directors of Westport; Dan Sceli, CEO and Director of Westport; Karl Viktor Schaller, Member of the Board of Directors of Westport; Lars Stenqvist, Chief Technology Officer Volvo Group; and Jan Ytterberg, Senior Advisor Volvo Group.

The joint venture will operate as an independent entity with Westport contributing certain HPDI assets and activities including related fixed assets, intellectual property, and business, into the joint venture. Volvo Group has acquired a 45% interest in the joint venture for approximately US$28 million, plus up to an additional US$45 million as an earn-out depending on the subsequent performance of the joint venture.