France’s CMA CGM said on Wednesday that it has acquired a 10% stake in the electric truck company Flexis created by Renault and Volvo Group, as the transport company expands further into the logistics business. CMA CGM announced last year through its energy fund that it would join the company and signalled its interest for a strategic investment of up to 120 million euros (USD 129 million) by 2026.
The vans, designed for last-mile parcel delivery, will be manufactured at Renault's Sandoville plant in northern France.
“Nobody knows logistics better than the team of Rodolphe (Saade),” Renault CEO Luca De Meo said at a press conference, referring to the CMA CGM chairman and CEO.
Privately owned CMA CGM completed a USD 5.25 billion acquisition of Bollore Logistics in February, adding freight management for pharmaceutical, cosmetics and luxury goods companies to its business.
With the shipper's acquisition of a 10% stake in the E-van business, the share of Renault and Volvo will be reduced to 45% each.
Both also plan to also invest 300 million euros over the next three years.
De Meo said the Flexis E trucks will be sold under the Renault and Volvo Group truck brands and possibly under the Nissan brand too.
They will also be offered to other customers for rebranding.
Di Meo added that Flexis is open to industrial and financial investors, although financing the joint venture is currently not an issue.
Volvo Group's Philippe DeVry has been appointed CEO of the new company.
(USD 1 = 0.9280 euros)
Also Read: Hyundai dominates Tata Motors to regain No. 2 spot in Indian car market
