Renault announces $320 million investment for electric van production

French automaker Renault has unveiled ambitious plans to invest €300 million (approximately $323.25 million) in its Sandouville assembly plant located in northern France. The investment is earmarked for the production of next-generation electric vans, slated to commence from 2026.

As part of the initiative, Renault aims to bolster its workforce at the Sandouville plant by hiring an additional 550 employees over the next four years. The move reflects Renault's commitment to scaling up its operations and advancing its presence in the electric vehicle (EV) market segment.

The forthcoming electric vans, designed primarily for last-mile delivery of parcels, will be manufactured under Renault's electric vehicle unit Flexis. Notably, Flexis is a strategic joint venture between Renault, Swedish automotive giant Volvo, and French shipping and logistics leader CMA CGM.

In another development, Renault and Volvo recently secured regulatory approval to officially launch the Flexis joint venture. This milestone paves the way for Renault's collaboration with CMA CGM Group, which has expressed keen interest in investing up to €120 million in the venture.

Renault's investment and expansion plans signal a pivotal step towards fostering innovation and sustainability in the automotive industry. By leveraging cutting-edge technology and strategic partnerships, Renault aims to spearhead the transition towards electric mobility while catering to evolving market demands.

(With Reuters inputs)