CNH Industrial invests $250M in e-truck start-up Nikola
In a recent statement, UK-headquartered capital goods company CNH Industrial has revealed that it is making a $250-million investment in US startup Nikola, which specializes in the production of electric trucks.
CNH Industrial is one of the biggest capital goods companies in the world. The company was created in 2013, as a result of a merger of GNH Global and Fiat Industrial due to the Fiat Group restructuring move. CNH Industrial’s commercial vehicle brands include Iveco Bus, Steyr, New Holland, Magirus, and Hueliez Bus.
The $250-million investment by CNH Industrial in Nikola is part of the US startup’s latest funding round. Nikola is looking to secure more than $1 billion in capital in the funding round.
Along with the financial transaction with Nikola, CNH Industrial’s commercial vehicle and powertrain brands Iveco and FPT Industrial will provide development and production expertise to Nikola to help the startup commercialize its planned fuel cell and battery trucks. The expertise will facilitate Nikola’s North America launch of its Nikola One and Nikola Two models, among other electric vehicles.
Furthermore, CNH Industrial and Nikola are also planning to establish a joint venture in Europe, initially for developing the ‘Nikola Tre’ fuel cell heavy-duty truck for the European markets. Nikola has revealed that the joint venture will integrate its fuel-cell speciality, technologies for hydrogen storage onboard, infotainment, control units, and the development of over-the-air upgrades.