Startup truck manufacturer, Nikola Motors, has received a $250 million USD investment from CNH Industrial it was announced overnight.
CNH Industrial CEO, Hubertus Muhlhauler, said the partnership with Nikola Corporation would accelerate the development of the Nikola ONE and TWO prime movers and the Nikola Tre heavy duty cab over truck.
At a media event at the New York Stock Exchange CNH Industrial also announced the targeting restructure of its IVECO on-highway and off-highway divisions to create two separate listed entities at its Capital Markets Day.
IVECO has been leading the development of liquefied natural gas (LNG) engines for 20 years and has produced some 50,000 natural gas powered engines to date including in 28,000 trucks and buses.
Along with Fiat Powertrain Technologies, IVECO have been largely instrumental in the expansion of the natural gas refuelling network in Europe and the fuel-cell technology which Nikola has been working on is regarded as the next logical step.
“The recognition that there needs to be fundamental reductions in automotive emissions is driving our industry to rapidly seek advanced technological solutions,” said Muhlhauser.
“Nikola’s choice of IVECO as its strategic partner is testament to our internationally recognised excellence in heavy duty trucks and alternative powertrain technologies," he said.
"Nikola has the technology but needs a partner with a European network to achieve success in a timely manner.”
According to Gerrit Marx, President of IVECO Commercial and Specialty Vehicles global climate change, geopolitical conflicts, future availability of fossil fuels and a self-aware circular economy all call for a fundamental change in how we operate.
“While today LNG delivers significantly lower well-to-wheel emissions, in the medium to long term fuel cell and Battery Electric Vehicle (BEV) will deliver the ultimate goal of zero-emission trucking,” he said.
(Below Image: Gerrit Marx, President of IVECO Commercial and Specialty Vehicles).