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Nikola Eyes Focus On Its North America Operations; Divests JV Ownership In Ulm, Germany To Iveco

  • Italian vehicle manufacturing company Iveco Group N.V. will assume full ownership of the joint venture with Nikola Corp (NASDAQ: NKLA) in Ulm, Germany.

  • Also, Iveco Group will be licensed to freely access and continue developing vehicle control software for the jointly developed BEV and FCEV.

  • Nikola will be granted the IVECO S-Way technology license for North America and related component supply from Iveco Group.

  • Also, Nikola will gain joint ownership of the intellectual property of Generation 1 eAxles, technology developed together with Iveco’s powertrain brand, FPT Industrial.

  • Iveco will cover the capital outlay related to this new phase of collaboration through its available liquidity, acquiring the above-named items partially in cash ($35 million) and partially in Nikola shares (20 million of shares). Iveco Group forecasts to absorb it with cash flow generation and it will also retain a meaningful amount of Nikola shares.

  • Also Read: Nikola Partners With Voltera On Hydrogen Station Funding

  • The joint venture, formed in 2019, offered Battery Electric Vehicles (BEV) and Fuel Cell Electric Vehicles (FCEV) for regional and long haulage.

  • Iveco Group will concentrate on Europe for the further development and commercialization of its own battery electric and fuel cell electric trucks, and Nikola will focus its operations in North America.

  • Price Action: NKLA shares are trading higher by 5.59% at $1.04 in premarket on the last check Tuesday.

  • Photo Via Company

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This article Nikola Eyes Focus On Its North America Operations; Divests JV Ownership In Ulm, Germany To Iveco originally appeared on Benzinga.com

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