On June 4, 2024, Foton Motor and Iveco Group signed a Memorandum of Understanding (MOU) in Beijing to jointly explore cooperation in the field of electric vehicles and components, aiming to expand their presence in the European and South American markets. The signing ceremony was attended by key executives from both companies, including Foton Motor’s Chairman Chang Rui, Executive Vice President Lu Zhenghua, Vice President Chen Qingshan, Vice President Qin Zhidong, Vice President of International Cooperation Ma Rentao, and Vice President of Power Transmission Feng Jing, alongside Iveco Group’s CEO Gerrit Marx, President of Truck Business Unit Luca Sra, President of Powertrain Business Unit Sylvain Blaise, Chief Technology and Digital Officer Marco Liccardo, Chief Supply Chain Officer Qu Ting, and Chief Manufacturing Officer Ángel Rodríguez Lagunilla. This agreement not only signifies strong recognition of Foton’s electric vehicle capabilities but also marks a significant step forward in Foton Motor’s globalization strategy.
Exploring New Developments Together
As a leading commercial vehicle manufacturer in China, Foton Motor has been committed to driving innovation and development in the automotive industry. This collaboration aims to co-develop a new generation of environmentally friendly electric vans. Utilizing Iveco’s sales channels, the partnership plans to commercialize electric vans under 3.5 tons gross vehicle weight (GVW) in the European and South American markets. This electric van is expected to positively impact regional and local supply chains in these markets.
Iveco, a pioneer in the commercial vehicle sector, focuses on the design, manufacture, and sale of heavy, medium, and light trucks. Advancing the electrification of light commercial vehicles, particularly those under 3.5 tons GVW, is a critical strategy for Iveco. The collaboration with Foton targets this segment precisely.
The MOU also opens the door for further collaborative opportunities, including the localization of vehicles in Europe and South America at a later stage. Additionally, the companies will explore supply opportunities between Iveco Group and Foton Motor, including those involving Fiat Powertrain Technologies, Iveco’s powertrain brand.
A New Journey in International Cooperation
For years, Foton Motor has been pursuing an internationalization strategy and a new energy strategy, focusing on developing low-carbon or zero-carbon green technologies and industrial systems. Since 2004, Foton Motor has exported a total of 926,000 vehicles, maintaining its position as China’s top commercial vehicle exporter for 13 consecutive years, with products sold in 130 countries worldwide. Foton has independently developed and mastered core technologies in electric powertrains, achieving multiple paths of development in pure electric, hybrid, and hydrogen fuel cell technologies, covering a full range of commercial vehicle products. Foton’s new energy products are sold in 45 countries and regions, accelerating the green transition of the global logistics industry and providing overseas consumers with more green and environmentally friendly travel options.
Foton Motor actively builds local product ecosystems, adhering to various cooperation models, including “traditional energy + new energy, brand + technology, equity joint ventures + technical cooperation, and supply chain collaboration for overseas expansion.” This strategy promotes the Chinese automotive industry chain’s international expansion, evolving from “product export” to “industry chain export.” Foton has established a global system centered on customer satisfaction, continually improving overseas order fulfillment, quality satisfaction, and KD project development. In terms of spare parts system capability, Foton has enhanced its overseas parts distribution system, significantly improving the operational quality of its Dubai and Americas RDCs, optimizing inventory structures, and providing strong support for further breakthroughs in overseas business.
Looking forward, Foton Motor will continue to collaborate with global partners, contributing more to achieving green, efficient logistics transportation.
