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Renault buys out Volvo and CMA CGM to gain full control of Flexis, an electric van company.

Renault announced on Monday that it would buy out the stakes of truckmaker Volvo Group and shipping firm CMA CGM in Flexis, their joint venture for new-generation electric vans. The agreement is expected to take effect by the first half 2026 as Renault CEO Francois Provost accelerates his efforts in streamlining the group's operation. Two sources said in January that the automaker had already planned to fold back its Ampere electric vehicle unit into the group. It has also shut down its car sharing services as part of restructuring its division focused primarily on new transportation solutions.

Flexis was founded in 2024, by the former Renault CEO Luca de Meo. He partnered with?Sweden’s Volvo. CMA CGM joined later as a minor shareholder. CMA CGM and Volvo own a combined 10%, while Renault holds 45%.

We have different opinions on how this project should be driven. Volvo Group spokesperson said, "We think this is the most strategic solution moving forward." The recent market slowdown was also a factor in the decision.

The European association of carmakers ACEA reported that new van registrations will fall by 8.8% between 2025 and 2025. Around 11% (or the newly registered vans) are electrically charged.

Volvo spokesperson refused to comment on financial details or purchase price. CMA CGM and Renault did not respond immediately to requests for comment. Volvo and Renault each committed to investing 300 million euros over a period of three years, while CMA planned to invest 120 millions euros.

In its annual report, the Swedish group reported that it had invested 240 million Euros in Flexis by 2024. This was on top of the initial 2.4 billion Swedish crowns (approximately $265?million).

The production of the Renault Trafic Van E-Tech Electric, the first model in the range, is expected to begin as planned by the end 2026 at Renault's Sandouville factory?in France.

Volvo will market the vehicle through Renault Trucks (part of the Volvo Group) from 2027, as part of a long-term agreement for light commercial vehicles.

(source: Reuters)