The European Commission has approved the formation of a joint venture between Swedish automaker Volvo and French giant Renault. This strategic move is aimed at strengthening their position in the electric vehicle market.
According to the European Commission, the proposed merger is set to have a limited market position and will not impede competition. In this 50-50 joint venture, Volvo and Renault will collaborate on the development, production, and sales of commercial electric vehicles.
Furthermore, the partnership will focus on the creation of software and logistic services. Initially targeting the European market, the companies plan to expand their offerings globally, as per the documentation from the European Commission.
This merger represents a significant step in the automotive industry’s shift towards sustainable transportation solutions, highlighting the growing importance of electric vehicles in the global market.