Iveco, a leading manufacturer of commercial vehicles, has announced that it will be taking over full ownership of its joint venture with Nikola Corporation in Europe. The joint venture, which was formed in 2019, was responsible for developing and producing battery electric and fuel cell electric heavy-duty trucks for the European market.
The deal, which is reportedly worth $48 million, will see Iveco assume full ownership of the Ulm, Germany-based production facility and all intellectual property related to the joint venture's products. Nikola, on the other hand, will receive $35 million in cash and 20 million shares of Iveco stock.
The move is a major coup for Iveco, which has been slow to adopt electric and fuel cell technology compared to its European rivals. With the acquisition of the Nikola joint venture, Iveco will now have a portfolio of zero-emission trucks that are ready for production.
"This is a significant step forward for Iveco as we accelerate our transformation into a sustainable mobility company," said Gerrit Marx, CEO of Iveco Group. "The acquisition of the Nikola joint venture will give us a competitive advantage in the European market and help us to meet the growing demand for zero-emission trucks."
The acquisition is also a positive development for Nikola, which has been struggling to get its electric and fuel cell truck programs off the ground. The company has been plagued by delays and cost overruns, and its stock price has plummeted in recent months.
The deal with Iveco will provide Nikola with much-needed cash and resources, and it will also give the company a foothold in the European market. With Iveco's expertise in manufacturing and marketing commercial vehicles, Nikola is now in a much better position to succeed in the zero-emission truck market.
Here are some of the key benefits of the deal for Iveco:
- Gains access to Nikola's technology and expertise in electric and fuel cell vehicles.
- Accelerates Iveco's own zero-emission truck program.
- Gains a foothold in the growing European market for zero-emission trucks.
Here are some of the key benefits of the deal for Nikola:
- Receives $35 million in cash and 20 million shares of Iveco stock.
- Gains access to Iveco's manufacturing and marketing expertise.
- Gains a foothold in the European market for zero-emission trucks.
The acquisition of the Nikola joint venture is a major coup for Iveco and a positive development for Nikola. The deal will help both companies to accelerate their zero-emission truck programs and gain a foothold in the growing European market.