By Dominic Chopping

STOCKHOLM--Volvo, Renault and CMA CGM are joining forces to produce a new generation of electric vans, pooling their efforts to decarbonize the transport and logistics sector and address booming e-commerce and rental businesses.

Swedish truck maker Volvo and French auto group Renault will launch a new company, with each investing 300 million euros ($316.5 million) over the next three years for an equal 50% share, they said Friday.

Shipping and logistics firm CMA CGM also plans to join the new company, investing EUR120 million, while Volvo and Renault will also continue to seek additional investment and business partners.

The vehicles will be built on a new fully-electric platform that will offer different body options and will adopt new connected software allowing delivery activity and user business performance to be monitored, the companies said in a joint statement.

Creation of the new company is expected in early 2024, subject to regulatory approval, with production of a new family of fully-electric and software-defined vehicles expected to start in 2026.

"We see a growing demand for clean, efficient, and safe urban transportation. Partnership and collaboration are key to achieve this," Volvo Chief Executive Martin Lundstedt said.

The future company is planned to operate under its own corporate identity and will be based in France.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 06, 2023 03:40 ET (07:40 GMT)

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