Iveco Group to join The Climate Pledge (and unveil medium- to long-term strategy)

Iveco Group has joined The Climate Pledge, a commitment co-founded by Amazon and Global Optimism to reach net zero carbon by 2040. The announcement was made alongside the communication of the 2026 strategy, with the group’s ambition to achieve total net revenues of industrial activities at between 16.5 and 17.5 billion euro, compared to 11.8 billion euro reached in 2019. Also, adjusted net profit is expected to be between 0.6 and 0.8 billion in 2026, compared to 0.3 billion in 2019.

The structure of the newco Iveco Group

The so-called “demerger” of Iveco Group from CNH Industrial will create an independent ‘pure player’ focused on its leading Commercial and Specialty Vehicles, Powertrain, and Financial Services businesses. The intention to separate its “On-Highway” (now named “Iveco Group”) and “Off-Highway” (Agriculture and Construction) businesses was first announced by CNH Industrial at its Capital Markets Day, held on September 3, 2019. Here’s a focus on future organization and top managers of the on-highway spin-off.

In the context of a strategic and exclusive heavy-duty truck partnership with Nikola, IVECO and Nikola Corporation are jointly developing BEVs and hydrogen fuel cell electric vehicle (FCEV) cab-over trucks, which will be manufactured in Europe through a 50/50 joint-venture, and in the U.S. by Nikola Corporation. IVECO will be the manufacturer for any EU emission-related purposes of the vehicles produced and distributed in EU by the European joint-venture and will be responsible for their distribution in the different jurisdictions of the EU. In 2021, the Group started a program with Plus AI, with the aim of building self-driving trucks by 2027. If successful, this project could deliver improvements of up to 20 percent in productivity and up to 5 percent in fuel consumption.

Iveco Group for a sustainable future: The Climate Pledge

Iveco Group inherits from CNH Industrial a strong commitment to a sustainable future and is announcing today that it signed The Climate Pledge, a commitment co-founded by Amazon and Global Optimism to reach net zero carbon by 2040, ten years ahead of the goal set by the Paris Agreement (here’s our post about Scania also joining The Climate Pledge). This intention is an integral element of the company’s wider ESG commitments, including those related to workplace and on-road safety, inclusivity & diversity, and environmentally friendly product lifecycle management. More specifically, to tackle climate change issues, the company has integrated a range of carbon-reduction initiatives and specific climate-related topics into the sustainability plan disclosed in the 2020 Sustainability Report of CNH Industrial, defining long-term strategic targets that will drive its business strategy.

More into details, in 2022, the next-generation alternative fuel engines running on CNG and LNG, and compatible with biomethane, will be developed, along with the ongoing focus on natural gas. In the following year, the next generation electric Daily, as well as a new generation of electric buses are foreseen. As for 2030, alternative driveline technologies on all vehicles will be implemented, with the ambition of achieving a reduction of 50 percent in CO2 emissions.