Iveco signs deal with Foton aiming at lightweight electric commercial vehicle segmen

Iveco and Chinese manufacturer 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“.

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 Daily.

Iveco – Foton deal for lightweight electric commercial vehicles

Foton is a commercial vehicle company under BAIC Group in China. It offers vehicles powered with new energy technologies such as pure electricity, hybrid and hydrogen fuel cells. The potential cooperation will also support Foton to further advance its globalisation strategy, Iveco states in a press note.

This partnership is 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 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.

It’s unclear if this strategy will affect also the passenger commercial vehicle division.

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 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”, the group states.

Present during the signing were a delegation from Iveco Group including Gerrit Marx, CEO; Luca Sra, President of the Truck Business Unit; Sylvain Blaise, President of the Powertrain Business Unit; Marco Liccardo, Chief Technology & Digital Officer; Angela Qu, Chief Supply Chain Officer; and Ángel Rodríguez Lagunilla, Chief Manufacturing Officer; and leadership from Foton, including Chairman Chang Rui; Executive Vice President Lu Zhenghua; Vice President Chen Qingshan; Vice President Qin Zhidong; Vice President of International Cooperation Ma Rentao; and Vice President of Power Transmission Feng Jing.