FILE PHOTO: The logo of Renault is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 15, 2023. REUTERS/Gonzalo Fuentes//File Photo
PARIS (Reuters) - Renault will work with fellow carmaker Volvo and shipping group CMA CGM on an electric van project that Renault has been developing to boost its position in the booming electric vehicle market.
Renault and Volvo signed binding agreements to launch a new company where they will initially each hold a 50% equity stake and each invest 300 million euros ($316 million) over the next three years, they said in a statement on Friday.
CMA CGM signed a non-binding letter of intent with Renault and Volvo to join the new company and invest 120 million euros through PULSE, its energy fund focused on decarbonisation of transport and logistics sectors.
Renault has been working on a plan to launch a new electric van in 2026 for the Renault and Nissan marques. Sources said earlier this year that project might be joined by Volvo-owned brand Renault Trucks, though Mercedes Benz Group, a long-time partner of Renault in vans, would not take part.
The launch of the joint venture between Renault and Volvo is expected in early 2024, subject to regulatory approval processes, with CMA CGM due to enter the new company subsequently, the partners said.
Production is expected to start in 2026 and the future company will be based in France.
There was no further detail on when CMA CGM might join or what stake it may take in the venture.
Renault and Volvo will continue to seek additional investment and business partners, they said.
The market for electric vans in Europe is forecast to triple in size by 2030, the companies said, adding their future vans would reduce by 30% overall usage costs for logistics customers through "Software Defined Vehicle" design.
CMA CGM, which has invested heavily in non-maritime transport in recent years, would assist in adapting design to the needs of logistics firms and would also provide supply chain support.
($1 = 0.9480 euros)
(Reporting by Dominique Vidalon, Gus Trompiz and Gilles Gillaume; Editing by Elaine Hardcastle and Mark Potter)
