Volvo Group ("Volvo") and Westport Fuel Systems Inc. (Nasdaq: NASDAQ:) today announced the closing and launch of their previously announced joint venture transaction. The joint venture is committed to accelerating the commercialization and global adoption of Westport's HPDI™ fuel system technology for long-haul and off-road applications. The joint venture will be led, on an interim basis, by Dan Sceli, Chief Executive Officer of Westport in addition to Scott Baker who will take on the role of Vice President, Product Development and Technology Officer and Anders Johansson who will be Vice President and Commercial Officer. The joint venture will be headquartered in Vancouver, Canada.
"The successful closing of the joint venture represents an important milestone for Westport and a true endorsement of our HPDI technology and fuel system" said Dan Sceli, CEO & Director of Westport Fuel Systems. "Together, we will accelerate the commercial adoption of HPDI for OEMs globally by leveraging the HPDI fuel system to its fullest potential. HPDI is uniquely poised to create and implement affordable solutions in hard to abate sectors like heavy-duty transport and off-road applications."
"This collaboration with Westport is a testament to our shared dedication to sustainability and our belief in the power of partnership to drive industry change. As we embark on our joint venture together, we are confident that, we can bring sustainable solutions forward, using the internal combustion engine, running on renewable fuels now and hydrogen in the future," said Lars Stenqvist, Chief Technology Officer of Volvo Group. "We, at Volvo, are committed to driving the transition to decarbonize transportation and this new HPDI joint venture enables us to accelerate the adoption of combustion engines powered by hydrogen and renewable fuels for long-haul and off-road applications in partnership with Westport."
As part of the agreement, three of the joint venture's board members have been appointed by each of Westport and the Volvo Group. These initial board members are Andrea Fuder, Chief Purchasing Officer Volvo Group, Dan Hancock, Chair of the Board of Directors of Westport, Dan Sceli, CEO and Director of Westport, Karl Viktor Schaller, Member of the Board of Directors of Westport, Lars Stenqvist, Chief Technology Officer Volvo Group, and Jan Ytterberg, Senior Advisor Volvo Group.
The joint venture will operate as an independent entity with Westport contributing certain HPDI™ assets and activities including related fixed assets, intellectual property, and business, into the joint venture. Volvo Group has acquired a 45% interest in the joint venture for approximately US$28 million, plus up to an additional US$45 million as an earn-out depending on the subsequent performance of the joint venture.
