Renault Group and Volvo Group are joining forces to develop an all-new generation of fully electric vans and associated services.

The groups’ joint venture is expected to open early 2024 in France while the first electric vans are due 2026

The new family of fully electric and software-defined vehicles will go on sale in 2026, targeting fast-rising eLCV demand, in particular from booming e-commerce and rental businesses.

The vehicles will be built on a skateboard platform, enabling high modularity for different body types at low cost and with a claimed breakthrough on safety requirements. Their compact design will enable urban mobility while different battery capacities will be on offer to suit needs and an 800V charging architecture will deliver fast charging times.

Thanks to their new software-defined vehicle architecture, the electric vans will offer services that could reduce the global cost of usage for logistic firms by 30%.

The two groups have signed binding agreements to launch a new company, expected to open early 2024 in France and with its own corporate identity. Renault and Volvo will initially hold respective 50-50 equity stakes and are planning to invest €300m (£259.3m) each over the course of the next three years.

They’ll be joined by French logistics company CMA CGM Group, which has signed a non-binding letter of intent on the deal, investing €120m (£103.7m) through its ‘Pulse’ Energy Fund, dedicated to accelerating the decarbonisation of transport and logistics sectors.

The new company will be fully independent, drawing on the expertise of three players.

Renault Group will bring the knowhow to develop and manufacture at scale the electric platform, while Volvo Group will draw on its strong customer base of professional logistic companies, global service network, and wide experience in uptime and productivity services. The two companies have been working together on light commercial vehicles for more than 35 years through Volvo Group’s Renault Trucks subsidiary, and both firms’ networks already distribute the Renault Master and Trafic commercial vehicles.

CMA CGM will assist the new company with its knowledge on transport and supply chain needs.

However, Volvo Group and Renault Group will remain competitors in all other areas.

Luca de Meo, CEO of Renault Group, said: “The new company is the start-up minded, unmatched combination of the complementary assets of three champions: a leading truck maker, expert in tailored services, a champion of the global supply chains and a European EV pioneer & LCV leader. All the ingredients are there to come up with something truly unique.”

Martin Lundstedt, president and CEO of Volvo Group, added: “We are excited to take yet another step in our journey towards sustainable transport solutions through the intended establishment of a new company. Volvo Group is keen to continue to offer its customers complete transport solutions that help them decarbonise their value chains. We see a growing demand for clean, efficient, and safe urban transportation. Partnership and collaboration are key to achieve this.”