Volvo, Renault launch commercial vehicle joint venture
Companies plan to invest $322M over next 3 years
Equipment manufacturers Volvo Group and Renault Group have launched commercial vehicle joint venture Flexis SAS, in a bid to develop additional decarbonization and technology solutions.
Volvo and Renault launched the JV on March 22 after obtaining final regulatory approvals, according to a Volvo news release. Flexis SAS aims to develop electric and technology-driven vehicles, Viktoria Svedlund, deputy head of media relations at Volvo Group, told Equipment Finance News.
“We are joining forces to address the growing needs of decarbonized and efficient logistics with an all-new generation of electric vans,” she said. “The pain points of the logistics players will be addressed with a new software-defined vehicle platform and a wide ecosystem of customized solutions.”
Volvo and Renault, along with CMA CGM Group, entered a non-binding agreement on Oct. 6, 2023, as all three companies look to further decarbonization efforts, according to a Volvo release. Volvo and Renault plan to invest 300 million euros ($322.1 million) over the next three years.
Through its Pulse energy investment fund, CMA CGM Group will invest up to $128.8 million in Flexis as part of the original Oct. 6 agreement, according to the Volvo release. Flexis SAS is not included in Pulse’s list of current investments as of April 1, according to Pitchbook Data.
Future of Flexis SAS
While the idea of Flexis SAS came from three different organizations, the joint venture aims to operate independently as production plans develop, Svedlund said. Production is planned to start in 2026 and the new firm will be based in France, she added.
With production nearly two years away, Flexis SAS remains under development, and a complete outlook for the company should form as Flexis SAS forms its leadership team, Svedlund said.
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