Iveco to assume ownership of European truck JV with Nikola
Iveco Group has announced plans to acquire Nikola’s electric truck joint venture in Europe, established in 2019. The deal will cost Iveco $35 million and will effectively buy out Nikola from the European markets. Nikola says it will focus on its US activities.
Iveco will also acquire 20 million shares from Nikola. Traded at $1 per share, this will drive the cost to approximately $55 mn. As part of the acquisition, Iveco will receive a license to develop further the vehicle control software for the jointly developed battery-electric vehicle (BEV) and fuel cell electric vehicle (FCEV) tractor units. Nikola will, in turn, receive a permit for the S-Way technology in North America and related components.
The acquisition is described as a new phase of the partnership between the two companies. Iveco writes, “Each company is now eager to sharpen its focus on heavy-duty transport,” which can be read as going their ways in different markets.
The acquisition is subject to regulatory approval and the drafting of definitive agreements. Executives from both companies have yet to comment on the decision.
Iveco Group has stated that it will further develop and commercialise battery and fuel cell electric tractor units for the European market. In contrast, Nikola will concentrate on its activities in North America with BEV and FCEV trucks and hydrogen infrastructure under the HYLA brand.
The joint venture between the two companies dates back to 2019 when CNH Industrial, Iveco’s owner, invested $250 million in Nikola. The plan was to set up a European joint venture with CNH’s commercial vehicle and powertrain brand FPT Industrial and Iveco supporting Nikola in launching its trucks. The partners geared up production of the battery-electric truck Tre in Ulm in 2021, with reports of the first series of electric trucks coming in August 2022. Iveco is also producing beta versions of the Tre FCEV, set to launch in 2024.
Despite the acquisition, the two companies will continue collaborating on their respective technologies. Nikola will become co-owner of the intellectual property of the first-generation eAxle, a technology developed jointly with the FPT powertrain brand within the Iveco Group.
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