CNH Industrial NV CNHI, -0.14% Tuesday said it is investing $250 million in Nikola Corp.'s series D funding, comprising $100 million in cash and $150 million in services. Start of production is anticipated within the first quarter of 2021, with deliveries of the Nikola TRE beginning in the same year.IVECO and FPT Industrial, the commercial vehicle and powertrain brands of CNH Industrial N.V. (NYSE: CNHI/ MI: CNHI), and Nikola Motor Company will manufacture, through their European Joint Venture, the Nikola TRE in Ulm, Germany, at the IVECO manufacturing facility.“The Nikola TRE is proving to be the most advanced articulated truck in the world and will continue to set the standard for zero-emission vehicles today and in the future” said Trevor Milton, Chief Executive Officer, Nikola Motor Company.
"The reason our company exists is in support of a sustainable future so everything we do in our manufacturing process and our building site will be done to ensure the smallest environmental footprint possible while making the highest quality, high tech products that will impact the sustainability of the planet," said Mark Duchesne, Nikola global head of manufacturing. The partnership announcement at the CNH Industrial Capital Markets Day in September 2019, was quickly followed in December with the unveiling of the Nikola TRE, a battery electric vehicle (BEV) heavy duty truck, which is the first step towards the fuel-cell electric (FCEV) model. “By drawing on our Gold standard World Class Manufacturing sites in Madrid and Valladolid, Spain, where the IVECO S-Way is produced, we are able to accelerate final assembly, powertrain integration and high-end customization of the Nikola TRE for a timely market introduction in 2021” said Gerrit Marx, President Commercial and Speciality Vehicles, CNH Industrial.The first models to enter production will be the battery-electric 4x2 and 6x2 articulated trucks with modular and scalable batteries with a capacity of up to 720 kWh and an electric powertrain that delivers up to 480 kW of continuous power output.The Nikola TRE currently in development is based on the new IVECO S-WAY platform and integrates Nikola’s truck technology, controls and infotainment. Testing is expected to begin in mid-2020 with prototypes showcased at the IAA 2020 commercial vehicle exhibition in Hannover, Germany this September.“Our European joint-venture with NIKOLA and today’s announcement, is real proof that zero-emission long-haul transport is becoming a reality, resulting in tangible environmental benefits for Europe’s long distance hauliers and its citizens,” said Hubertus Mühlhäuser, Chief Executive Officer, CNH Industrial. CNH Industrial N.V. invested $250 million in Nikola Corporation through IVECO so far and is set to produce Nikola trucks through their European Joint Venture in Ulm, Germany, at the IVECO manufacturing facility. The primary focus of the collaboration is to leverage each partners’ respective expertise to successfully deploy zero-emission heavy-duty trucks and to disrupt the industry with an entirely new business model.Furthermore, the German Federal Government recently released its draft National Hydrogen Strategy, which has the aim of expanding the pioneering role of Companies in hydrogen technologies. The Nikola TRE is based on the IVECO S-WAY platform and integrates Nikola’s truck technology, controls and infotainment.