Iveco Group and Nikola Corporation are pleased to announce the launch of a new phase of the partnership which, started in 2019, has so far achieved all the objectives set, leveraging on their respective skills to offer zero-emission heavy commercial vehicles (Class 8 category for the United States) in North America and Europe.
Despite Covid-19 and supply chain challenges, the two companies have worked together vigorously to achieve the results achieved so far, launching Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs). Cell Electric Vehicle) for regional and long-haul transport. Each of the two companies now intends to focus on its reference market in heavy transport.
The Turin-based industrial group will focus on Europe, for the further development and commercialization of battery and fuel cell electric vehicles, which includes the implementation of the financial business model called GATE. Nikola will in turn focus its activities in North America, with an integrated approach to customers, offering battery electric and fuel cell vehicles and hydrogen distribution infrastructure under the HYLA brand.
Iveco Group will acquire 100% of the joint venture in Ulm-Germany. In addition, it will obtain an unrestricted license to use and further develop the jointly developed BEV and FCEV vehicle control software. Nikola will obtain from the Iveco Group the license of the Iveco S-Way technology for North America and the related supply of components, acquiring the co-ownership of the intellectual property of the first generation electric axles, a technology developed together with FPT Industrial, the specialized Iveco Group brand in propulsion systems.
Iveco Group will cover the financial outlay related to this new phase of the collaboration through available liquidity, for a consideration partly in cash (35 million dollars) and partly in Nikola shares (20 million shares). Iveco Group expects to absorb the negative cash impact through cash flow generation and therefore confirms the cash flow target for 2023. Iveco Group will also retain a significant amount of Nikola shares and the two companies will continue to work towards the same objective: to lead the energy transition towards the future of mobility.