Volvo Group and Renault Group have signed a binding agreement to create a joint venture with the goal of creating a new generation of electric vans. These will be built on a modular platform with 800 V batteries, with production expected to start in 2026. Logistics company CMA CGM is also planning to join the company.
To avoid any confusion: Volvo Group is the parent company behind Volvo Trucks and Renault Trucks, which is separate from Volvo Cars, owned by Geely. Renault Group has the passenger car brands Renault, Dacia and Alpine in its portfolio, which also produce the light commercial vehicles (LCVs) Renault Kangoo, Trafic and Master.
Equal parts
The Swedish and French groups have agreed to found a joint venture in early 2024, with an investment of 300 million euros each in the next three years. CMA CGM has also signed a non-binding agreement to pump 120 million euros into the new company.
The goal of this new company, which as of now doesn’t have a name yet, is to develop a new generation of fully electric LCVs. The base of these vehicles comes from a modular skateboard platform, which makes it easy to offer different body types.
Coming in 2026
These new vehicles are also adopting a ‘software defined vehicle’ approach, with high levels of connectivity and monitoring possibilities, which should increase productivity and lower costs. The batteries will use 800 V tech, which allows for faster charging.
“The new company will be fully independent, combining the agility of a start-up with the strong backbone of its industry-leading partners”, according to the press release from Renault Group and Volvo Group.
The production of this new family of electric light commercial vehicles is planned to start in 2026. The project is also aiming for support from the French government as part of the France 2030 investment plan.
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