Iveco and Nikola, the paths separate: the Turin group focuses on Europe

TURIN. Iveco Group and Nikola separate their paths, but continue to collaborate. The first will focus on Europe, its reference market, the second on the United States and Canada. Thus Iveco will acquire the total shareholding in the joint venture in the Old Continent with Nikola Corporation, for a value on the balance sheet of around 44 million euros. It is the beginning of a new phase of the partnership that began in 2019 to offer zero-emission heavy commercial vehicles (Class 8 category for the United States) in North America and Europe.

Iveco will cover the financial outlay through available liquidity, for a consideration partly in cash (35 million dollars) and partly in Nikola shares (20 million shares). The negative cash impact will be absorbed with the generation of cash flow. The Turin-based group, chaired by Suzanne Heywood and led by CEO Gerrit Marx, will record a one-off negative impact of 44 million euros in the income statement for the first quarter of 2023.

In the joint note, the two companies explain that the joint venture has so far achieved all the objectives set, leveraging their respective skills to offer zero-emission heavy commercial vehicles. Iveco and Nikola now intend to focus on their reference market in heavy transport. The Exor-controlled group of the Agnelli family 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 focus on North America, offering battery and fuel cell electric vehicles and hydrogen distribution infrastructure under the Hyla brand. The transaction provides for the acquisition by Iveco Group of the 100% interest in the joint venture in Ulm, Germany with an unrestricted license for the use and further development of the jointly developed Bev and FCev vehicle control software.

Nikola will have from Iveco the license of the Iveco S-Way technology for North America and the relative 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 brand of the Italian group specialized in propulsion systems.