Daimler, Volvo and VW’s Traton mull $600 million truck-charging Joint Venture

Daimler Trucks, the heavy vehicle unit of Stuttgart-based German multinational automaker Daimler AG[1], Gothenburg-headquartered Swedish multinational auto giant AB Volvo alongside Munich-based Volkswagen subsidiary Traton, had said in a joint statement on Monday that the automotive industry Goliaths had been brewing off an option to form a JV in a bid to engender an e-vehicle charging network for long-range trucks and buses, suggesting an ambitious, but achievable move which could evaporate a long-running debate over mass adoption of long-haul trucks and buses.

In point of fact, a steep lag in charging infrastructure for long-haul trucks and buses had remained a key obstacle to a mass-adoption of battery-powered buses and trucks, while a worrisome lack in investment in the sector had been fuelling up a so-called range-anxiety alongside concerns that the vehicles would not come across enough charging slots to cover up a long-range trip.

Amid such garrulous landscape in battery-powered long-haul heavy vehicles industry, if successful, latest approach from Daimler Trucks, AB Volvo and Traton to create an EV charging JV would mark up a milestone event with an initial investment of about £600 million.

Daimler Trucks, Traton and Volvo to create truck-charging JV

Aside from that, according to the joint statement, three of the key European heavy vehicles’ manufacturers, Daimler Trucks, Traton and AB Volvo – all of which had been pouring heavy money on developing electric trucks – had agreed to invest EUR500 million combined into the JV which would begin operation by early-2022, while all three automotive industry megaliths would own equal stakes in the joint venture.

Meanwhile, expressing an out and out optimism over the JV, Traton Chief Executive Matthias Gruendler said, “…And thereafter we are very open in all directions to let other parties partner with us and actually bring equity into the joint venture,” adding there would be a lot of outside interest once the JV would roll out.

References

  1. ^ Stuttgart-based German multinational automaker Daimler AG (www.financial-world.org)