France’s CMA CGM has acquired a 10% stake in the Flexis electric van venture set up by Renault and Volvo Group, the companies said on Wednesday, as the shipper expands further into the logistics business.
CMA CGM, through its energy fund, had said last year it would join the company and signalled its interest for a strategic investment of up to 120 million euros ($129 million) by 2026.
The vans, designed for last-mile delivery of parcels, will be made in Renault’s Sandouville plant in northern France.
“Nobody knows logistics better than the team of Rodolphe (Saade),” Luca de Meo, chief executive of Renault, told a press briefing, referring to the CMA CGM chairman and CEO.
Privately owned CMA CGM completed a $5.25 billion acquisition of Bollore Logistics in February, adding freight management for pharmaceutical, cosmetics and luxury firms to its business.
With the shipper’s acquisition of a 10% stake in the E-van business, Renault and Volvo’s share will be reduced to 45% each.
Both plan to also invest 300 million euros over the next three years.
Flexis E-vans will be sold under Renault and Volvo Group’s Renault trucks brands and possibly under the Nissan brand too, said De Meo.
They will also be offered to other customers for rebranding.
Flexis is open to industrial and financial investors, added De Meo, although financing of the joint venture is currently not an issue.
Volvo Group’s Philippe Divry has been appointed CEO of the new company.
Source: Reuters.com