Iveco hopes to compete with Ford, Volkswagen in smaller electric van segments

The products from a partnership with a major Chinese commercial vehicle manufacturer could enable Iveco dealers to compete with the likes of Ford, Volkswagen and Stellantis in the small and medium electric van market segments.

Iveco has signed a memorandum of understanding (MoU) with Foton Motor to explore potential collaboration in the areas of electric vehicles (EVs) and components, and joint business opportunities, for Europe and South America.

Iveco Group has an electrification strategy and it wants to extend its LCV product range in the future to offer smaller vans with lower payloads as well as its existing Iveco Daily and eDaily large vans.

It would include adding chassic cab and panel van all-electric models under the 3.5 tonne threshold, which would likely be sold by Iveco's dealer network throughout Europe and South America.

Currently the UK's light van market (up to 3.5 tonnes) is dominated by the Ford Transit, Ford Transit Custom, Vauxhall Vivaro and Volkswagen Transporter.

Although currently only in the early stages, with this non-binding MoU, the potential cooperation would help Foton expand globally, and it can open the two companies to joint exploration of additional future synergies, including the possible localisation of activities in Europe and South America, to be evaluated at a later stage.

In a joint announcement, the companies said: "This non-binding agreement advances Iveco Group’s and Foton’s independent strategies to enhance competitiveness and create leading innovative solutions that meet global demand for new energy transport through an ecosystem of mutually beneficial partnerships."

Foton is pursuing multiple routes through new energy technologies such as pure electric, hybrid, and hydrogen fuel cells for commercial vehicles.

Earlier this year, Iveco Group also signed a supply agreement with Hyundai Motor Company for an electric 2.5 - 3.5-tonne chassis cab to be sold and serviced in Europe by Iveco.