In breaking news out of Europe overnight, Italian truck maker Iveco and Ford’s Turkish European truck making operation, Ford Otosan have announced the signing of a joint venture agreement, which they say is a binding Joint Development Agreement (JDA), to design and engineer a new cabin for the heavy-duty trucks from both brands.
The companies said together under the joint venture they will outlay an estimated total expenditure of around $AUD 598 million (euro 343 million) to develop the cab.
The investment of more than half a billion Australian dollars, underlines the huge costs facing companies in developing new product, particularly with the added expense pressures involved with zero emission driveline developments, triggering the need for more joint venture design and engineering collaborations such as this.
Similar joint venture operations already in place include Daimler and Volvo’s $AUD2 billion CelCentric JV to develop hydrogen drivelines along with the numerous JVs between Japanese truck makers such as the Fuso Hino tie up and Isuzu and Honda’s hydrogen collaboration.
Both Iveco and Ford Otosan are struggling for volume in Europe, with their current product and would know the huge costs for development can only be invested if a partner is found to amortise the capital expenditure.
Ford Otosan has been building its range of heavy-duty trucks sold into Europe as the Ford F-Max for the past six years, with the truck winning the International Truck of the Year at the 2019 IAA Hanover Truck Show.
The international judging jury said it was impressed with the Ford, its flat floor, its 500hp Ford Ecotorq engine and the ZF TraXon gearbox.
The jury praised the F-Max for its efficiency and advanced driveline characteristics
Despite its critical acclaim and some bold volume and sales network growth projections by Otosan for the F-Max, which claimed that the truck would be available in 55 markets by the end of this year and that it would take a five per cent market share, it is well off achieving either of those two goals.
The Ford F-Max went on on sale in Europe in early 2019 and in 2024 the heavy duty truck captured just 2500 sales across Europe and Scandinavia for a meagre market share of less than one per cent share of the overall Euro market.
Present at the signing ceremony were the general manager of Ford Otosan, Güven Özyurt, the vice president of Ford Trucks, Emrah Duman, as well as the CEO of the Iveco Group, Olof Persson and president of the Iveco Truck Business Unit, Luca Sra.
Emrah Duman said the move underlined his company’s dedication to engineering, innovation and delivering high-quality solutions for the heavy commercial vehicle industry.
“At Ford Trucks, we are committed to pushing the boundaries of engineering excellence and this Joint Development Agreement is a testament to our capability to design and develop cutting-edge solutions that not only meet but exceed the industry’s evolving standard, “ said Duman.
“By joining forces with Iveco we are enhancing our ability to deliver innovative, high-performance cabins that will set new benchmarks in safety, aerodynamics, and driver comfort, all while ensuring cost efficiency and regulatory compliance,” he saidIveco’s Luca Sra, said the company is thrilled to take its partnership with Ford to the next level through the agreement.
“By sharing engineering expertise and combining our strengths, we will create a product that sets new standards in safety, efficiency, quality and driver comfort,” Sra said.
“This agreement is a strategic move that will allow both Iveco and Ford Trucks to remain at the forefront of the market, well-prepared to comply with new regulations and deliver exceptional quality and value to our customers.”
Notably Iveco’s former CEO Gerit Marx, who was promoted to run Iveco’s parent organisation CNH Industrial in July last year, was not present at the signing, despite it being understood that he was one of the main drivers of the tie up with Ford.
The new joint agreement follows the signing of an exclusive, non-binding Memorandum of Understanding (MoU) by the two companies in March last year.
The companies said the JDA is a ‘contractual framework for the co-development of a new heavy-duty truck cabin, as well as common sourcing where applicable’.
Both companies say they will manufacture and assemble the cabin in their own facilities, customising specific styling design concepts and selling the products under their respective brands, Ford Trucks and Iveco and given Australia takes Iveco’s heavy duty models directly from Europe it is likely the new cab will be sold in Australia under the Italian brand’s banner.
Although Ford Otosan builds the Ford Transit vans sold in Australia it is unlikely we will ever see the big Ford truck here, although you can never say never, particularly with the company also declaring that up to 50 per cent of the trucks will be zero emission models by 2030, which might be an attractive opportunity for Ford here, but it is unlikely.
The two companies say the new truck cabin will enhance the competitiveness of both brands, which they claim also offers a solution in compliance with the forthcoming EU Direct Vision Standard with improved aerodynamics for reduced carbon emissions.
Ford and Iveco say the focus will be on cabin comfort, safety, aerodynamics and modularity, while “prioritising cost-efficiency and full compatibility with all powertrains”.
The joint venture is expected to see its first fruits by 2028 when the first cabs are expected to be ready for production.
The companies said that through the agreement and as a result of their joint venture, they will both gain a new top-line modular cab family with state-of-the-art technology, which they say will be far superior to the cabins previously planned, while fostering significant savings in investments.
Ford Otosan is a joint venture company based in Turkiye, in which the Ford Motor Company and Turkiye company, Koç Holding each hold a 41 per cent stake.
Ford Otosan’s Eskişehir Plant, which produces the’ heavy-duty F-Max trucks, currently has an annual manufacturing capacity of 22,500 units.
