FAW Group Be Reportedly in Talks to Buy a Majority Share of IVECO
IVECO owner, CNH Industrial, was reportedly in talks to the sell a majority share in the truck manufacture to Chinese automaker FAW Group.
Having had an offer worth $US3.7 billion rebuffed last July, the Changchun-based FAW, a state-owned Chinese company, has renewed discussions with CNH Industrial to acquire IVECO’s commercial vehicles business which would include trucks and buses and a stake in the engine division.
It is understood CNH Industrial, a subsidiary of the Agnelli family’s holding company Exor, had also held talks with Shandong Heavy Industry Group, another Chinese industrial conglomerate, prior to Christmas.
FAW, which makes heavy duty trucks under its Jiefang brand, is looking to expand outside China as was reported by Reuters, who claims a source had confirmed an improved offer has been made during the most recent negotiations to acquire all of IVECO’s commercial vehicles business as part of its plans to obtain access to the international commercial vehicles market.
IVECO is currently in discussions to develop autonomous truck technologies with Jiefang-affiliated Chinese startup Plus.
At this stage it is still too early to know how this will affect its partnership with Nikola who it is currently building the prototype battery-electric Nikola Tre in Ulm, Germany.
IVECO already makes vans in China with state-owned SAIC Motor, the parent of MG and LDV light commercial vehicles.
In 2019 IVECO defense vehicles became part of CNH Industrial’s commercial and specialty vehicles unit.
Source : primemovermag
Editor : Linda