Iveco expands small electric van ambition with China's Foton

Iveco has signed a Memorandum of Understanding (MoU) with Foton, a leading commercial vehicle manufacturer in China, to explore potential collaboration in the areas of electric vehicles (EVs) and components, and joint business opportunities, for Europe and South America.

Foton is pursuing multiple routes through new energy technologies such as pure electric, hybrid, and hydrogen fuel cells for commercial vehicles.

The potential cooperation with Iveco will support Foton to further advance its globalisation strategy.

This partnership is part of Iveco Group’s overarching electrification strategy to extend its light commercial vehicle line-up to the Gross Vehicle Weight (GVW) category that falls below the Daily range of 3.5 - 7.2 tonnes, adding both chassis cab and panel van all-electric models under the GVW 3.5-tonne threshold.

With Foton, Iveco Group will investigate the option of utilising the its existing sales channels for the commercialisation of an electric panel van in Europe and South America in the lightest category of up to GVW 3.5 tonnes.

Earlier this year, Iveco Group also signed a supply agreement with Hyundai Motor Company for an electric 2.5 - 3.5-tonne chassis cab to be sold and serviced in Europe by Iveco. 

The MoU between Iveco Group and Foton is also opening the two companies to joint exploration of additional future synergies, including the possible localisation of activities in Europe and South America, to be evaluated at a later stage. Supply opportunities including through Iveco Group’s powertrain brand FPT Industrial, will also be discussed.

This non-binding agreement advances Iveco Group’s and Foton’s independent strategies to enhance competitiveness and create leading innovative solutions that meet global demand for new energy transport through an ecosystem of mutually beneficial partnerships.

Picture caption: Luca Sra, President, Truck Business Unit, Iveco Group (front right); Chen Qingshan, Deputy General Manager of Foton Motor (front left); Gerrit Marx, Iveco Group CEO (back right); and Chang Rui, Chairman of Foton Motor (back left)