Nikola Iveco Europe is changing its name to EVCO
Iveco has now completed the acquisition of the Germany-based BEV and FCEV truck joint venture with Nikola, initially announced in May. Nikola Iveco Europe will be renamed EVCO (Electric Vehicles COmpany) as part of the acquisition.
The definitive agreements with Nikola Corporation have been finalised “in accordance with the terms described on 9 May 2023”, according to the Iveco Group. The “permanent and sole ownership” of the German company now lies with Iveco. In addition, the Nikola name has been directly eliminated from the designation – the division will now operate as EVCO.
“The successful completion of this announced step reconfirms the company’s ongoing commitment to play a leading role in zero-emission heavy-duty transport,” Iveco writes in the emphatically brief announcement of the deal’s completion.
While there is now clear talk of “full and sole ownership”, it sounded different when it was announced in May. At that time, it was said that they were entering the “next phase of the partnership”. While for Iveco it was a strengthening of its own electric truck business, for Nikola the move was tantamount to a European retreat. “Each company is now looking to sharpen its own focus on heavy haulage,” the companies had stated initially.
As a purchase price for the EVCO unit, Iveco is reportedly paying US$35 million in May and also acquiring 20 million Nikola shares. Since the share price in May was rich exactly one dollar, that would be a further $20 million. Since the deal was closed on the terms announced at the time, there has been no change here.
But changes are also brewing in Nikola’s US business: Nikola meanwhile announced that it would begin liquidating the assets of battery manufacturer Romeo Power. A corresponding procedure has been initiated. Nikola acquired Romeo less than a year ago and announced in May 2023 that it would consider selling the Romeo Power business as part of its restructuring.