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Volvo and Renault join forces on electric van development

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Ro, 06 October 2023

Renault Volvo

Today, Renault Group and Volvo Group announced plans for a new joint venture tasked to create next-generation of electric vans and address a growing demand for zero-emissions light commercial vehicles. Market analysts believe that the market for all-electric vans will triple by 2030 and the two car manufacturers want a piece of the pie.

CMA OGM Group will also participate in the joint venture with Volvo and Renault, pending only some regulatory approval processes. CMA OGM Group is a French-based logistics company with many years of experience in the field, while Renault and Volvo will provide the necessary manufacturing expertise and technologies.

Both makers are in the truck-manufacturing business for some time now. And Renault has already announced its new Trafic Van E-Tech.

Volvo and Renault join forces to create a startup for electric vans

The joint venture will focus on delivering a scalable and modular fully electric 800V LCV skateboard platform with focus on advanced software features and safety. Renault calls it Software Defined Vehicle architecture as it offers an unprecedented experience to connect in an open source logistic business environment. Renault and Volvo estimate that their solution will be able to save up to 30% of the logistics cost.

The new company will be independent while still leaning on Renault and Volvo, so it will have the best of both worlds - the flexibility of a new startup and the financial support of two big players in the industry. Volvo and Renault have agreed to split the cost for research and development as well as bring their own know-how and expertise to the table. Its headquarters will be in France and operation should start in early 2024, pending all regulatory approval processes. Production is scheduled for sometime in 2026.

Source

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