Ford Trucks, the heavy commercial brand of Ford Otosan, and IVECO announced Tuesday the signing of a binding Joint Development Agreement (JDA) for designing and engineering a new cabin for heavy-duty trucks, through total expenditure valued at nearly $374 million.
IVECO is the brand of Italian transport vehicle manufacturing giant Iveco Group that designs, manufactures and markets light, medium and heavy commercial vehicles. On the other hand, Ford Trucks is the brand of Ford Otosan – a joint venture between Ford Motor Company and Türkiye's conglomerate Koç Holding – which manufactures numerous road and construction series of trucks.
"This agreement follows the exclusive, non-binding Memorandum of Understanding (MoU) announced by the two companies on 14th March 2024, transforming it into an operational project," IVECO said in a written statement on Tuesday.
"The JDA is a contractual framework for the co-development of a new heavy-duty truck cabin, as well as common sourcing where applicable," it added.
Moreover, both companies will manufacture and assemble the cabin in their own facilities, customizing specific styling design concepts and selling the products under their respective brands, Ford Trucks and IVECO.
The new cabin will enhance the competitiveness of both brands, offering a solution in compliance with the forthcoming EU Direct Vision Standard with improved aerodynamics for reduced carbon emissions, according to the statement by the Italian company.
The focus will be on cabin comfort, safety, aerodynamics and modularity, whilst prioritizing cost-efficiency and full compatibility with all powertrains, it said, adding that the first cabins are expected to be ready for production by 2028.
"Through this agreement and as a result of their joint effort, the two companies will attain a new top-line modular cabin family with state-of-the-art technology, far superior to the cabins previously planned, while fostering significant savings in investments," the statement read.
It added that the estimated total expenditure to be spent by the parties together under the JDA is 343 million euros ($373.8 million).
Present at the signing ceremony were Güven Özyurt, general manager of Ford Otosan, Emrah Duman, vice president of Ford Trucks, Olof Persson, CEO of Iveco Group and Luca Sra, president of the Truck Business Unit at Iveco Group.
Duman, as part of remarks included in the statement, highlighted Ford Trucks' dedication to engineering innovation and delivering high-quality solutions for the heavy commercial vehicle industry.
"At Ford Trucks, we are committed to pushing the boundaries of engineering excellence. This Joint Development Agreement is a testament to our capability to design and develop cutting-edge solutions that not only meet but also exceed the industry’s evolving standards. By joining forces with IVECO, we are enhancing our ability to deliver innovative, high-performance cabins that will set new benchmarks in safety, aerodynamics and driver comfort, all while ensuring cost efficiency and regulatory compliance," he said.
Sra, the president of the truck business unit at Iveco Group, for his part, stated: "We are thrilled to take our partnership with Ford Trucks to the next level through this Agreement. By sharing engineering expertise and combining our strengths, we will create a product that sets new standards in safety, efficiency, quality and driver comfort."
"This agreement is a strategic move that will allow both IVECO and Ford Trucks to remain at the forefront of the market, well-prepared to comply with new regulations and deliver exceptional quality and value to our customers."
