Iveco and Foton to jointly explore future synergies in EVs and components

Iveco, the brand of Iveco Group that designs, manufactures and markets light, medium and heavy commercial vehicles, and Foton, a leading commercial vehicle manufacturer in China under the BAIC Group, have signed a Memorandum of Understanding (MoU) to explore potential collaboration in the areas of electric vehicles and components, and joint business opportunities, for Europe and South America. The MoU was signed on June 6.

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 Iveco Daily range of GVW 3.5 - 7.2 tons, adding both chassis cab and panel van all-electric models under the GVW 3.5-ton threshold.

With Foton, the Iveco Group will investigate the option of utilising the Iveco 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 tons. The future panel van will potentially positively impact the regional and local supply chains in Europe and South America, in addition to further supporting the growth of the IVECO point of sales and workshop network. Earlier this year, Iveco Group also signed a supply agreement with Hyundai Motor Company for an electric GVW 2.5 - 3.5-ton chassis cab to be sold and serviced in Europe by IVECO. Iveco Group’s collaborations with Foton and Hyundai aim to create a comprehensive line-up of electric commercial vehicle offerings weighing less than its iconic DAILY.

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.