Volvo, Renault, and CMA CGM Restructure Electric Van Venture
Volvo Group, Renault Group, and shipping giant CMA CGM have reached an agreement on a strategic change for their electric van joint venture, Flexis. While details of the change were not specified, the companies stated the move reaffirms their commitment to the collaboration. The venture aims to address the growing demand for electrified urban logistics.
- Under the new agreement, Renault Group will acquire Volvo Group's 45% stake and CMA CGM's 10% stake in Flexis, taking full ownership of the venture. The deal is expected to be finalized by the end of the first half of 2026, pending regulatory approval. - The initial joint venture, officially launched in early 2024, saw Renault and Volvo each holding a 45% stake, with CMA CGM holding the remaining 10%. The initial investment plans involved Renault and Volvo each contributing €300 million, and CMA CGM investing €120 million. - Despite the ownership change, production of a new generation of electric vans is still scheduled to begin by the end of 2026 at Renault's Sandouville plant in France. The first model will be the Renault Trafic Van E-Tech electric. - Volvo Group, through its Renault Trucks division, will remain a partner and will market and distribute the vehicles developed by Flexis starting in 2027. - The venture is led by CEO Philippe Divry and COO Krishnan Sundararajan. - The electric vans will be built on a new, dedicated "skateboard" platform featuring 800-volt architecture for fast charging and a Software-Defined Vehicle (SDV) architecture to allow for ongoing updates and connectivity. - The global electric commercial van market is projected to see significant growth, with one forecast predicting a compound annual growth rate (CAGR) of 21% from 2025 to 2035, driven by demand for sustainable last-mile delivery solutions. - Flexis aims to reduce the total cost of ownership for logistics players by 30% through its connected vehicle technology, which will help monitor delivery activity and business performance.
