Here’s some details from a press release received earlier today. CNH, the owners of Iveco has invested money in Nikola… Ivekola? Niveco?
Why is this interesting? Nikola has some very interesting altnernative fuel technology, but it doesn’t have the backing of a major truck/vehicle manufacturer until now. The concepts of the trucks and the hydrogen cell technology are hugely exciting, but making them a mass manufactured reality is a different matter. CNH sees an opportunity. This opens up the avenue of a European joint venture, which will give Iveco a much needed boost in Europe, complimenting its efforts with LNG and it gives Nikola access to capital to get its own trucks on the road in the United States.
This is a snippet from the press release – we look forward to hearing more on this in the coming days.
CNH Industrial N.V. (NYSE: CNHI / MI: CNHI), today announced its intention to enter into a strategic and exclusive Heavy-Duty Truck partnership with Nikola Corporation, based in
Phoenix, Arizona, U.S.A., to accelerate industry transformation towards emission neutrality of Class 8 / Heavy-Duty Trucks in North America and Europe through the adoption of fuelcell technology. Nikola’s zero-emission Heavy Duty Trucks, powered by proprietary hydrogen fuel cell and battery technology, will be the first-to-production. The company’s disruptive business model
foresees an industry-first ‘all-in’ lease rate, which includes vehicle, service, maintenance and fuel costs, providing long-term total cost of ownership certainty at or below diesel costs.
CNH Industrial will take a $250 million strategic stake in Nikola as the lead Series D investor, comprising $100 million cash and $150 million in services, such as product development, manufacturing engineering, and other technical assistance, as well as supply of certain key components to accelerate the production timeline of the Nikola TWO and Nikola TRE. Pre-money valuation was set at $3 billion. Nikola anticipates raising over $1 billion in the D round, granting approximately 25% ownership to new investors and business partners, including CNH Industrial. IVECO and FPT Industrial, the commercial vehicle and powertrain brands of CNH Industrial respectively, will assist in engineering and manufacturing expertise to industrialize Nikola’s fuel-cell and battery electric trucks. The following vehicles will benefit from this partnership:
The Nikola ONE, a NAFTA- compliant Class 8 sleeper truck; the Nikola TWO, a NAFTA compliant Class 8 day-cab truck; and the Nikola TRE, a European compliant cab-over Heavy-Duty Truck.
Nikola will contribute technologies for a European Joint Venture with CNH Industrial that will include class-leading fuel-cell expertise, e-axles, inverters, independent suspension, onboard hydrogen fuel storage, over-the-air software update functionality, infotainment, Corporate Communications.