CNH Industrial, the mother company of Iveco, has resumed negotiations with the Chinese company FAW to sell CNH’s truck branche, Iveco, Reuters reports. Both parties broke off negotiations last July, because FAW, a state-owned company, would not offer enough money for Iveco. The offer then amounted to three billion euros. Recently, just before the turn of the year, the EU and China concluded a new and extensive trade agreement. This may have prompted the parties to renegotiate. Reuters tried hard to find out more, but no one involved wants to say more than talk again. As a result, CNH’s share increased in value on the Milan stock exchange.
FAW is by far the largest car manufacturer in China. Trucks are built under the name JieFang. Cleavage It has been known for some time that CNH Industrial is striving to unbundle its own company. The automotive branch would then be sold, while the industrial branch would remain. CNH Industrial would be dissatisfied with the structurally low margin that the truck division is generating. The ultra-modern and large diesel engine factory of FPT (Fiat Power Train) would also be sold with Iveco. According to those involved, FAW, which already cooperates with VW and Toyota domestically, would like to expand outside China.
Iveco could be a suitable candidate, especially since the company is a pioneer in the field of LNG, which is popular in China as a fuel for trucks, and of course because of the collaboration with Nikola, to come up with electrically powered trucks, it is not using a battery or a fuel cell. In turn, Iveco must bond with a partner in order to join the violence of its larger competitors, who will also collaborate on hydrogen, as the Volvo-Daimler deal shows.