Iveco and China-based Foton 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’.
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Foton is a commercial vehicle company under the BAIC Group in China.
The partnership is described by Iveco as part of Iveco Group’s electrification strategy to extend its light commercial vehicle line-up to the Gross Vehicle Weight (GVW) category that falls below the Daily model 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, 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.
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By GlobalDataEarlier 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.
