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Jaguar Land Rover (JLR) has moved its key accounts to a direct sales model as part of a new fleet strategy.

The change is expected to strengthen the carmaker’s relationships with end-user drivers and improve customer service for fleets.

It comes a year before the brand’s retailers fully transition to an agency sales model. Leasing companies will transact with JLR directly, with the vehicle then allocated to the driver’s nearest authorised Fleet and Business Centre for delivery.

A key element of the new process is that all JLR fleet customers will receive a full handover from a retailer.

Andrew Jago (pictured), general manager for fleet and business at JLR, said: “Anybody who drives a Jaguar Land Rover vehicle has made an informed choice to drive that vehicle and I think it’s really important we recognise that in the experience we deliver.

“Having a direct brand relationship with our customers allows us to give a great modern luxury purchase and ownership experience, but also the opportunity to renew it at the end.

“We want to strongly move away from preferred supplier arrangements where you’ve got groups who are taking orders for leasing companies and then delivering cars to customers through third party logistics companies.

“There’s no proper handover, there’s no introduction to the service department and there’s no ultimate relationship with the brand.”

Around a third of the JLR retail network is currently recognised as a Fleet and Business Centre. Jago said this gives sufficient geographical coverage, but will remain under review.

Retailers can opt-in to the scheme and must commit to putting the resource and standards in place to engage with fleet customers.

Jago, who has been responsible for fleet sales at JLR since 2019, added: “Utopia, for me, would be that every retailer can really deeply understand and support the needs of the fleet business user, but I won’t compromise on that just to say we’ve got full coverage.

“We want to make sure we are really putting our arms around those customers and are doing the job properly.”

Smaller fleets and small-to medium enterprises (SMEs) will continue to transact with their local dealer directly until the agency model is adopted in 2024.

OVERCOMING SUPPLY CHALLENGES

Last year saw sales declines for both the Jaguar and Land Rover brands, driven predominantly by a shortage of semiconductors. Jaguar sales were down by 35%, according to Society of Motor Manufacturers and Traders (SMMT) figures, and Land Rover was 19% behind its 2021 sales.

While registrations fell, the brand launched new versions of its flagship Range Rover and Range Rover Sport models. Both achieved record levels of interest.

Order books across JLR’s portfolio consequentially swelled to more than 200,000 units, 50,000 of which are destined for UK customers.

Production of Jaguar’s XE and XF models was halted, while a large number of derivatives across the model lines of both marques were suspended or given lead times of more than 12 months, allowing factories to focus on building the hotly anticipated new models.

JLR’s UK sales director Paddy McGillycuddy has confirmed to Autocar that availability of the affected models is gradually returning.

Production is still largely centred around plug-in hybrid and electric variants, however. Jago said a number of core fleet derivatives can now be had within a six-month window and that his team is working closely with fleets and leasing companies to communicate any changes to lead times.

Among the cars in the spotlight are the electric I-Pace – Jago said production has been “fiercely protected” – and the recently updated Jaguar F-Pace and Range Rover Velar plug-in hybrids, which now feature a larger battery, giving them sufficient range to slip into the 8% benefit-in-kind (BIK) tax band.

Jaguar has a strategy to become an electric-only carmaker by 2025, but details on how that will be achieved are yet to be revealed. In the meantime, the new Range Rover and Range Rover Sport will have full electric availability from the end of 2024.

The focus remains firmly on the plug-in hybrid variants for now though. Both offer class-leading electric capability with up to 70 miles of zero-emission driving per charge.

Jago added: “The efficiency of the plug-in hybrid models we’re offering with Range Rover and Range Rover Sport has led to a significant shift in the salary sacrifice space, which, predominantly, is driven by battery electric vehicles (BEVs).

“With that 5% positioning on BIK it’s had huge appeal in the salary sacrifice space and we’ve seen people coming out of BEV into plug-in hybrid. There’s definitely more receptiveness to plug-in hybrids.”  By Graham Hill thanks to Fleet News

A new approach to electrified powertrain development, which aims to cut costs by almost a third, has been unveiled by Nissan.

The manufacturer claims the new approach, called X-in-1, will result in a 30% reduction in development and manufacturing costs by 2026, compared to 2019.  

Nissan says that core electric vehicle (EV) and electric powertrain components will be shared and modularized.

The manufacturer has developed a three-in-one powertrain prototype, which modularises the motor, inverter and reducer in EVs.

A five-in-one prototype, which additionally modularises the generator and increaser, is planned for use in its e-Power vehicles.

The X-in-1 approach has been developed to enable EV and e-Power core components to be produced on the same line.

Nissan aims to achieve e-Power price parity with internal combustion engine (ICE) vehicles by around 2026.

Senior vice president at Nissan, Toshihiro Hirai, who leads powertrain and EV engineering powertrain development, said: “We make the most of our expertise and know-how from our more-than-a-decade long development and production of electrified technologies.

“Through our innovations in electrified powertrain development, we’ll continue to create new value for customers and deliver 100% motor-driven vehicles – EVs and e-Power – as widely as possible.”

Under its long-term vision, Nissan Ambition 2030, the company aims to bolster its line-up with 27 new electrified models, including 19 EVs, by 2030.

Nissan says it wants to bring the “unique value” of its electrified vehicles to the broadest range of customers by introducing the most suitable models to each market at the appropriate time.  By Graham Hill thanks to Fleet News

Cars with keyless entry systems are twice as likely to be stolen as those without, according to data from Aviva.

The insurance firm is warning vehicle owners to be on their guard, as dark nights and modern theft methods create a perfect landscape for criminals.

ONS data shows keyless entry was the most common method of access for vehicle thefts in England and Wales in the year ending March 2020, accounting for more than a third (36%) of incidents. This increased from 13% in the previous year.

The data also reveals that three quarters of vehicle-related thefts (76%) occurred during the hours of darkness.

Aviva said the proportion of incidents where vehicles were actually taken in the dark – as opposed to items taken from vehicles – has actually fallen, suggesting thieves are becoming more daring.

Alec Reeder, performance lead at Aviva General Insurance, said: “While vehicle security has developed and improved in many ways, unfortunately criminal activity is evolving too. Over the past two years, we’ve found claims for stolen keyless vehicles are twice as likely as those for non-keyless vehicles.

“While theft claims account for only a small proportion of our vehicle claims overall, we understand that a stolen car can be very distressing for owners. We’d encourage people to take extra precautions, particularly at this time of year, when thieves have the added advantage of reduced daylight.

“Seemingly old-fashioned mechanical devices – such as a steering wheel or foot pedal lock – can be a useful visible deterrent, encouraging thieves to think twice. Other steps include using a signal blocking pouch for keys, or parking in a garage or secure area where possible. Cars really can be gone in 60 seconds, so it’s vital that motorists stay one step ahead of the criminals.” By Graham Hill thanks to Fleet News

Competition in the car market thanks to the increased presence of Chinese manufacturers could drive down the prices of battery electric vehicles (BEVs), according to Grant Thornton.

The Chinese new electric vehicle market has increased by 110% in the past year, while the broader passenger car market increased by 14%, figures from the China Association of Vehicle Manufacturers suggest.

BYD was the strongest-performing Chinese carmaker, selling 1.62 million BEV and hybrid models, an increase of 132% year-on-year.

Such strong BEV sales have driven up BYD’s market value, making it the world’s third-largest automotive company by value after Tesla and Toyota.

Chinese OEMs are set to target the European market to keep their growth trend going, says Philip Nothard, insight and strategy director at Cox Automotive.

“Chinese brands are pricing aggressively in their home market and clearly show more willingness to compete on price than the European and American incumbent OEMs such as BMW, Stellantis, Mercedes Benz, Ford, and Tesla,” he explained.

“Currently, retail prices for Chinese brands are not significantly lower than European and American OEMs. However, they are substantially better equipped with full infotainment and ADAS systems.

“In contrast, the European and American OEMs are falling short in providing this as standard equipment for their vehicles.”

In the latest edition of Cox Automotive’s quarterly digital automotive insight update, AutoFocus, Grant Thornton says that Europe is expected to experience an influx of Chinese brands over the next two years, with cut-price product offerings in the premium and mass market, aiming to gain market share quickly.

This, it argues, could push down BEV and internal combustion engine (ICE) vehicle prices and put European OEMs’ margins under pressure.

Owen Edwards, head of downstream automotive at Grant Thornton UK, said: “During 2022, fewer than 2,000 Jeep vehicles (ICE vehicles) were sold in China, with only one Jeep sold in May 2022.

“This suggests Chinese brands are taking the pricing war not only to BEVs but also to ICE vehicles.

“With China’s advanced battery technology, sourcing of raw materials and more advanced BEV supply chain, Chinese OEMs can manufacture BEVs at €10,000 cheaper than European automakers, representing a significant cost advantage.”

It is unclear whether the EU will react to the influx of Chinese vehicles in the region by imposing further tariffs on imported vehicles to protect their domestic OEMs, says Grant Thornton.

It is clear, however, that Chinese carmakers must consider this possibility when deciding their long-term manufacturing strategies for Europe.

“At present, OEMs’ profitability has remained robust in the face of supply chain disruptions as vehicle shortages meant retail prices for vehicles have remained high, allowing OEMs’ margins in 2021 and early 2022 to hold up well,” continued Edwards.

“However, the rise in raw material prices and further disruptions in the supply chain caused by gas shortages in Europe have meant the profits of many OEMs have started to suffer.

“In 2023, OEMs are likely to stabilise their earnings against a backdrop of lower costs for some raw materials and a less volatile supply and distribution chain.

“As a result, production in US factories is increasing, and production utilisation is heading back to more normalised levels of 76%.”

Nothard says that the growing influence of Chinese brands adds another potential headwind for UK OEMs to counter in 2023.

“It’s also likely that the supply and demand for vehicles could be affected by any trade disruption caused by intensifying protectionism and sanctions,” he added.

“In addition, the UK’s Department of Transport is consulting on its Zero Emissions Vehicle policy. This could mandate automotive manufacturers to register a certain number of zero-emission cars and vans in the UK by 2024, in preparation for a 2030 ban on new pure petrol and diesel vehicles.”

Grant Thornton’s complete analysis can be found in Cox Automotive’s AutoFocus insight update.  By Graham Hill thanks to Fleet News

Charging an electric car on a pay-as-you-go, non-subscription basis at a rapid charger has increased by 21% since September, new research suggests.

Analysis by the RAC’s new Charge Watch initiative and the FairCharge campaign shows that the per kilowatt hour (kWh) price has risen by 7.81p, from 36.74p to 44.55p. 

It means that the average cost to complete an 80% rapid charge of a typical family-sized electric car with a 64kWh battery has increased by £4 in the past eight months, from £18.81 to £22.81.

In stark contrast, the cost of filling a 55-litre family car from empty to 80% with petrol has increased by £14.54 to £74.21 – a 24% increase.

The RAC’s analysis shows that it now costs on average 10p per mile to charge at a rapid charger, up from 8p per mile (ppm) last September.

This is nearly half the cost per mile compared to filling a petrol-powered family car, the cost of which has risen from 15ppm since the end of last September to 19ppm now. The cost per mile for a similarly sized diesel-powered car is even higher at nearly 21p.

Meanwhile, the average price of charging at the quickest ultra-rapid chargers – which have a power output of 100kW-plus and can deliver a charge to a compatible vehicle in as little as 20 minutes – has increased by 16.76p per kWh, from 34.21p per kWh in September to 50.97p in May. This means the cost to charge a vehicle to 80% has risen from £17.51 to £26.10.

The price increases facing drivers of electric cars using publicly accessible chargers can be explained by the rises in the wholesale cost of electricity, which itself is driven by hikes in the cost of gas.

Ofgem figures show that the wholesale cost of gas doubled between the end of September 2021 and the end of March this year, with wholesale electricity prices rising by around 65% over the same period.

RAC electric vehicle spokesperson Simon Williams said: “Our analysis shows that the quickest places to charge are also the most expensive with ultra-rapid chargers costing on average 14% more to use than rapid chargers.

“For drivers in a hurry though, or travelling a long distance, paying this premium might well be worth it with the very fastest chargers capable of almost completely replenishing an electric car’s battery in a matter of minutes.

“Having said that, the most affordable way of charging an electric car isn’t at a public charger – it’s from home, where overnight electricity rates can be much lower than their public charger counterparts.

“Our own RAC Recharge tariff, for instance, costs just 12p per kWh overnight. But for people who have no option of charging up at home, there is no opportunity to benefit from these sorts of savings.”

The other reason home charging can be so much cheaper is because of the way that electricity is taxed.

“VAT on electricity from a public charger is levied at a rate four-times that which applies to domestic electricity which makes it far more expensive to charge on-the-go than it should be,” explained Williams.

The FairCharge campaign is therefore calling for the 20% VAT rate currently charged on electricity at public chargers to be cut to match the 5% levied on domestic electricity.

Williams said: “We are right behind the FairCharge campaign in thinking this is totally unfair and flies in the face of the Government’s ambition for many more drivers to opt for an electric vehicle.

“We understand conversations have been had within Government over this ‘no driveway premium’, but it’s time there was an acceptance that a VAT rate that’s more favourable to drivers who have their own off-street parking risks putting other drivers off making the switch.

“Given the cost-of-living crisis, it’s surely only fair that everyone pays the same level of VAT no matter where they buy their electricity from.”

The RAC has launched Charge Watch to give greater clarity to drivers about what they can expect to pay to charge on public networks.  By Graham Hill thanks to Fleet News.

Leasing a battery electric vehicle (BEV) is cheaper than funding a new vehicle on personal contract purchase (PCP), new research suggests.

Leasing.com analysed pricing data for its 15 most popular BEVs and found that leasing was the most cost-effective option on 13 vehicles. Just the Renault Zoe and Jaguar I-Pace were cheaper using PCP.

The highest cost difference was 31% for an Audi E-Tron, with the average difference in cost being 18%.

David Timmis, managing director of Leasing.com, says that one of the most important challenges the industry faces, with the greater shift towards EVs, is making them affordable.

“Without this, the market simply won’t shift quick enough,” he explained. “Thankfully, leasing provides consumers an alternative route to driving an EV that won’t break the bank and, in fact, will save them money compared to PCP – the current most popular new car finance product in the UK.”

The Finance and Leasing Association (FLA) reported that the value of new car personal leasing grew 27% in the 12-months to January 2021.

Toby Poston, director of corporate affairs at the British Vehicle Rental and Leasing Association (BVRLA), said: “Leasing is the perfect way to finance a new BEV.

“With so much economic uncertainty and technology changing so fast, it is not surprising that more and more people are using this fixed cost, affordable and hassle-free method to fund their leap to electric motoring.”

Leasing.com’s analysis shows that the Tesla Model 3 has a list price of £42,935, however, when leased over four years, the total cost comes in at £25,445.77.

Compare that against a PCP cost of £30,384, and leasing will save drivers 19% over the life of the contract, it says.

The largest saving overall was found when comparing costs for an Audi E-Tron. On PCP, the Audi has a total cost of £43,420.14 at the end of a 48-month contract.

On lease, the same make and model comes in at a total cost of £34,311.50. A total saving of £9,108.64, it says.

Leasing.com compares personal and business car leasing offers from brokers, dealers, motor manufacturers and independent funders.

Battery Electric Vehicle Cost Comparisons: Lease (PCH) vs Finance (PCP)

Identical term and mileage allowances

Model	Total Lease Cost	Total PCP Cost (excluding balloon)	£ Difference
Tesla Model 3	£25,445.72	£30,384	£4,938.28
Volkswagen ID.3	£25,445.72	£22,039.86	£5,090.58
Hyundai Ioniq Electric	£18,113.68	£22,880.30	£4,766.62
Hyundai Ioniq 5 Electric	£22,294.80	£28,689.29	£6,394.49
Hyundai Kona Electric	£17,312.16	£19,107.44	£1,795.28
Kia E-Niro	£18,483.28	£23,897.40	£5,414.12
Mini Hatchback EV	£15,534.40	£18,250.25	£2,715.85
Nissan Leaf	£10,976.16	£13,092.01	£2,115.85
Vauxhall Corsa-e	£13,519.84	£15,282.20	£1,762.36
Renault Zoe	£14,630.36	£14,060	-£570.36
MG Motor UK ZS EV	£17,768.43	£23,266.83	£5,498.40
Volkswagen ID.4	£18,838.28	£23,506.74	£4,668.46
Jaguar I-Pace	£41,037.04	£38,277	-£2,760.04
Lexus UX300e	£23,628.56	£24,039	£410.44
Audi E-Tron	£34,311.50	£43,420.14	£9,108.64

Source: Leasing.com

By Graham Hill thanks to Fleet News

Inconsistent new car supply is persuading fleets to look at different brands to electrify the vehicles they operate sooner rather than later, says FleetCheck.

Peter Golding, managing director at the fleet software specialist says that it has resulted in several manufacturers, which previously had low or non-existent fleet profiles, gaining ground in the corporate market.

“There are a number of factors converging here but probably the strongest is that drivers are very keen to get out of ICE vehicles into EVs with significantly lower benefit in kind rates,” explained Golding.

“However, the availability of EVs in general, especially those with sensible delivery times, is extremely variable and so their real-world choices often consist of manufacturers that have not traditionally had a significant fleet presence and fall outside of existing badge policies.

“Some companies are gaining from this in a noticeable manner. Names such as Tesla, Kia, Hyundai, and even Polestar have not historically figured on company car bestseller charts but are making their way onto fleets in relatively large numbers.”

Golding believes that much of this success is deserved, with the models on offer not just being in good supply but also representing some of the best core company car EVs currently available.

“It’s having a definite and, in some cases, a rapid effect on the badge mix seen on some fleets,” he said.

However, it remains to be seen whether this situation will lead to a long-term change in which these new manufacturers will dominate the fleet market or established carmakers will reassert their presence.

“Some established manufacturers have individual models doing well but among the big players, probably only VW can currently offer a good choice of EV models in the principal sectors of the company car market,” continued Golding.

“This situation will be resolved in the next couple of years as new models are introduced but it will be interesting to see whether there is an ongoing degree of displacement, especially with the predicted entry of a number of highly capable Chinese carmakers into the market in the medium term adding to the potential for disruption.”  By Graham Hill thanks to Fleet News

Tesla is allowing non-Tesla vehicles in the UK to use its Supercharger network, as part of a pilot scheme.

The electric car maker has opened 15 Supercharger stations, with 158 charge points, to drivers of non-Tesla vehicles across the UK.

The sites are located at Aberystwyth, Adderstone, Aviemore, Banbury, Birmingham St Andrews, Cardiff, Dundee, Flint, Folkestone Eurotunnel, Grays, Manchester Trafford Centre, Thetford, Trumpington, Uxbridge and Wokingham.

Drivers must use the Tesla smartphone app to access the chargers. Pricing is set at 60p per kWh, for non-Tesla owners, although a monthly subscription of £10.99 will provide cheaper rates.

A statement issued by Tesla said: “Access to an extensive, convenient and reliable fast-charging network is critical for large-scale EV adoption. That’s why, since opening our first Superchargers in 2012, we have been committed to rapid expansion of the network. Today, we have more than 30,000 Superchargers worldwide.

“Tesla drivers can continue to use these stations as they always have, and we will be closely monitoring each site for congestion and listening to customers about their experiences.

“More customers using the Supercharger network enables faster expansion. Our goal is to learn and iterate quickly, while continuing to aggressively expand the network, so we can eventually welcome both Tesla and non-Tesla drivers at every Supercharger worldwide.”

Tesla chargers are equipped with two connectors. One for Tesla vehicles and a CCS connector. Tesla has not confirmed the maximum charging speeds available to non-Tesla owners at the points.

Last year, Tesla launched a similar trial in the Netherlands. It also provides non-Tesla drivers with access to its Supercharger network in Austria, Belgium, France, Norway, Spain and Sweden.  By Graham Hill thanks to Fleet News

A shortage of wiring harnesses due to the conflict in Ukraine has overtaken the semiconductor crisis as the biggest supply chain problem for Volkswagen.

The German car maker is moving production of the harnesses to north Africa and eastern Europe, as Russia’s war on Ukraine adds to the growing list of automotive component shortages.

UK car registrations were down 25.9% on pre-pandemic levels, in February, as vehicle production remained constrained. Now, it is believed that new car prices will soar due to the rising cost of parts.

Rising raw material costs will drive up prices for both electric and internal combustion engine vehicles, Volkwagen Group chief financial officer Arno Antlitz warned, with everything from batteries to catalytic converters set to become more expensive.

Metals, including aluminium, along with the nickel and lithium used in batteries are becoming increasingly more expensive.

The Volkswagen Group’s sales revenues grew by 12.3% in 2021, despite it selling 2.3 million fewer cars than in a pre-pandemic 2019.

“Over the past two years, we have learned to better mitigate the impact of crises on our company,” said Antlitz. “I am confident that we will make the best possible use of these experiences to stay on track in these difficult times.

The company expects to increase deliveries of new vehicles by up to 10% this year, and boost its revenues by a further 8-13%.

Volkswagen Group CEO Herbert Diess warned that delays in supplies of wire harnesses, which bundle up to 3.1 miles of cables in a car and are unique to each model, could force Volkswagen to revise its outlook for 2022, if alternative sources are not found in 3-4 weeks.

Tesla has also been forced to increase prices in China and the US, this week, as a result of rising raw materials costs.

Elon Musk, the company’s CEO, said the carmaker was facing significant inflationary pressure in raw materials and logistics. By Graham Hill thanks to Fleet News

Ford has unveiled plans to launch seven new all-electric vehicles in Europe – three new passenger vehicles and four new commercial vehicles – by 2024.

Starting in 2023, Ford will begin production of an all-new electric passenger vehicle, a medium-sized crossover, built in Cologne with a second electric vehicle added to the Cologne production line-up in 2024.

Both newcomers will be built on the Volkswagen Group’s MEB platform, as part of a strategic alliance between the German car maker and the Blue oval.

The first model is likely to be largely based on the VW ID4, while the second is billed as a ‘sports crossover’ like the upcoming VW ID5.

In addition, an electric version of the current Ford Puma will be available, made in Craiova, Romania, starting in 2024.

Ford’s Transit range will also include four new electric models – the all-new Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller, next generation Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024.

“These new Ford electric vehicles signal what is nothing less than the total transformation of our brand in Europe – a new generation of zero-emission vehicles, optimized for a connected world, offering our customers truly outstanding user experiences,” said Stuart Rowley, chair, Ford of Europe.

EV production and investment in Cologne

Ford confirmed today that the first volume all-electric passenger vehicle to come out of the Ford Cologne Electrification Centre will be a five-seat, medium-sized crossover.

In 2021, sports utilities and crossovers accounted for 58% of all Ford passenger vehicle sold in the continent, up nearly 20 percentage points from 2020.

The all-electric crossover breaks new boundaries for Ford. Capable of a 500km (310m) driving range on a single charge, the vehicle and its name will be revealed later in 2022, with production commencing in 2023.

Today’s confirmation that a second, all-electric passenger vehicle – a sports crossover – will be built at the Ford Cologne Electrification Centre means that electric vehicle production at the facility will increase to 1.2 million vehicles over a six-year timeframe.

Investment in the new electric passenger vehicles to be built in Cologne is expected to be $2 billion. The investment includes a new battery assembly facility scheduled to start operations in 2024.

New global business unit

Today’s announcement builds on the recent news that the company has created a new global business unit – Ford Model e – focused on the design, production, and distribution of electric and connected vehicles.

Together with Ford Pro, the business unit focused on Ford’s commercial vehicle business, these two business units will define Ford’s future in Europe, it says.

“I am delighted to see the pace of change in Europe – challenging our entire industry to build better, cleaner and more digital vehicles,” said Jim Farley, Ford president and CEO. “Ford is all-in and moving fast to meet the demand in Europe and around the globe.

“This is why we have created Ford Model e – allowing us to move at the speed of a start-up to build electric vehicles that delight and offer connected services unique to Ford and that are built with Ford-grade engineering and safety.”

Ford expects its annual sales of electric vehicles in Europe to exceed 600,000 units in 2026, and also reaffirmed its intention to deliver a 6% EBIT margin in Europe in 2023.

The acceleration in Europe supports Ford’s goal to sell more than 2 million EVs globally by 2026 and deliver company adjusted EBIT margin of 10%.

“Our march toward an all-electric future is an absolute necessity for Ford to meet the mobility needs of customers across a transforming Europe,” explained Rowley. “It’s also about the pressing need for greater care of our planet, making a positive contribution to society and reducing emissions in line with the Paris Climate Agreement.”

The company also announced today that it is targeting zero emissions for all vehicle sales in Europe and carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.

New joint venture aims to increase battery production in Europe

To support Ford’s vehicle electrification plans, Ford, SK On Co and Koç Holding have signed a non-binding Memorandum of Understanding for a new joint venture business in Turkey.

Subject to execution of a final agreement, the three partners plan to create one of the largest EV battery facilities in the European wider region.

The joint venture would be located near Ankara and will manufacture Nickel NMC cells for assembly into battery array modules. Production is intended to start as early as mid-decade with an annual capacity likely to be in the range of 30 to 45 Gigawatt hours.

The investment the three partners are planning in the battery joint venture – including support from the Turkish Government – will directly benefit large and small commercial vehicle operators across Europe, it says. By Graham Hill thanks to Fleet News