9/5/2019 | 1 MINUTE READ

CNH Invests $250 Million in Nikola

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Industrial vehicle producer CNH Industrial NV is investing $250 million in Nikola Motor Co. and forming a joint venture to help launch the startup company’s fuel cell and electric trucks in Europe.

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Industrial vehicle producer CNH Industrial NV is contributing $250 million to Nikola Motor Co.’s Series D funding goal to raise $1 billion. The two companies also are forming a joint venture in Europe.

The deal will give CNH a stake of nearly 8% in Phoenix-based Nikola, which aims to launch three fuel cell-powered Class 8 trucks by the end of 2022. The investment consists of $100 million in cash and $150 million in engineering and manufacturing support from CNH’s Iveco and FPT powertrain units.

Nikola, which previously raised more than $265 million, has an estimated pre-money valuation of $3 billion. Robert Bosch GmbH and South Korea’s Hanwha Group each have invested more than $100 million in Nikola. Nikola CEO and founder Trevor Milton is the company’s largest shareholder.

Nikola plans to use the new funds to complete development of its trucks, build a factory in Arizona and open a network of hydrogen fuel stations. The company says it has a combined 14,000 pre-orders for the Nikola One sleeper (pictured), Two day cab and Tre cab-over-engine models.

Nikola also plans to offer battery-electric variants of the trucks. The Tre is designed specifically for Europe.

The joint venture with CNH will focus on the European rollout of the fuel cell- and battery-powered trucks, with Nikola leveraging Iveco’s sales and service operations. The companies also will work to implement Iveco's “S-Way” technology—a mix of safety, connectivity, aerodynamic and convenience features—into the Tre EV variant.

In turn, Nikola will provide technical assistance to CNH. This includes fuel cells, e-axles, inverters, independent suspensions, on-board hydrogen fuel storage, over-the-air software update capabilities, infotainment, vehicle controls, telematics protocols and power electronics.

Earlier this week CNH confirmed reports that it plans to split the on-highway (Iveco and FPT) and off-highway (Case New Holland) units into separate businesses by early 2021.

RELATED CONTENT