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Iveco to assume ownership of Nikola JV
The research could advance
court cases seeking to hold polluters accountable for climate-fueled
disasters.
May 15, 2023
By Chad Elmore
Iveco Group and Nikola Corp. enter a new partnership phase
![](images/images_05_17_2023/pic3.jpg)
The Nikola Tre fuel cell
electric truck. (Photo: Nikola)
Iveco Group N.V. and Nikola Corp. have entered a new phase of the
partnership that started in 2019. The companies said the work has so
far met all of their milestones to deploy zero-emission heavy-duty
Class 8 trucks in North America and Europe, launching battery electric
vehicles (BEV) and fuel cell electric vehicles (FCEV) for regional and
long haulage.
Each company is reportedly eager to sharpen its own focus on
heavy-duty transport. Iveco Group will concentrate on Europe for the
further development and commercialisation of its own battery electric
and fuel cell electric trucks, which includes rolling out its
financing business model Gate, and Nikola will focus its operations in
North America, with an integrated approach to its customers, offering
BEV, FCEV and hydrogen infrastructure via its Hyla brand.
Iveco Group will assume full ownership of the joint venture in Ulm,
Germany. Also, Iveco Group will be licensed to freely access and
continue developing vehicle control software for the jointly developed
BEV and FCEV.
Nikola will be granted the IVECO S-Way technology license for North
America and related component supply from Iveco Group, and will gain
joint ownership of the intellectual property of Generation 1 eAxles,
technology developed together with Iveco Group’s powertrain brand, FPT
Industrial.
Iveco Group will cover the capital outlay related to this new phase of
collaboration through its available liquidity, acquiring the
above-named items partially in cash (US $35 million) and partially in
Nikola shares (20 million of shares). Despite the negative cash impact
generated, Iveco Group said it forecasts to absorb it with cash flow
generation and therefore it will not change its cash flow target for
2023; it will also retain a meaningful amount of Nikola shares. Iveco
Group and Nikola will continue to work towards the same ultimate goal:
to lead the energy transition to the future of mobility.
The above-mentioned provisions are subject to all applicable
regulatory approvals and preparation of definitive agreements to more
fully implement the terms of the binding terms sheet between the
companies
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