Date: November 13, 2023. — Volvo Group announced that it had acquired the battery business of Proterra for $210 million in a bankruptcy auction. Moreover, the deal is expected to be finalized in early 2024, pending approval by the U.S. bankruptcy court.
The Volvo Group stated that it will obtain access to Proterra’s battery technology and know-how. Additionally, it will acquire a development center in California and an assembly plant in South Carolina by purchasing Proterra Powered. According to the business, the acquisition would boost its position in the rapidly expanding market for electrified commercial vehicles. It would also expedite its battery-electric roadmap.
Martin Lundstedt, president and CEO of Volvo Group, expressed satisfaction in welcoming the Proterra Powered team to the Volvo Group. He emphasized that the acquisition aligns with their commitment to advancing sustainable transport solutions and solidifies their prominent role in electromobility. Furthermore, this strategic move underscores Volvo Group’s dedication to driving the transition towards more environmentally friendly transportation options.
In response to the acquisition, Gareth Joyce, CEO of Proterra, highlighted their deliberate efforts during the Chapter 11 process to optimize the potential of each product line. He emphasized that the integration of the Proterra Powered business into the Volvo Group represents a significant stride towards realizing their mission. Moreover, this integration aims to maximize the effectiveness of their various offerings in the market.
One of two auctions held for Proterra’s assets was the one for the company’s battery division. The Proterra Transit auction is the other one that is currently going on and should end later this month. NFI Group, a Canadian bus manufacturer, is reportedly the highest bidder for Proterra Transit, with an offer of $140 million.
Governments worldwide are increasingly prioritizing environmental sustainability and zero-emission transportation. The Volvo Group’s acquisition of Proterra is a strategic move to stay at the forefront of the evolving automotive industry. The $210 million investment not only strengthens Volvo’s presence in the electric bus market but also positions the company to play a pivotal role in shaping the future of sustainable mobility.
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