Mergers and acquisitions
Renault takes full ownership of electric van manufacturer Flexis from Volvo and CMA CGM
Renault Group has announced that it has concluded an agreement with partners Volvo Group and CMA CGM Group to take full ownership of Flexis, their joint venture to create a new generation of electric vans. Krishnan Sundararajan, previously Flexis' chief operating officer, has replaced Phillipe Divry as CEO of Flexis.
When Flexis was formed in October 2023 as a three-way joint venture between Renault Group, Volvo Group and CMA CGM, the arrangement reflected a calculated sharing of risk in what was then a fast-moving but deeply uncertain market for electric light commercial vehicles. Less than three years later, that calculus has shifted.
On February 23, 2026, Flexis announced that its founding shareholders reached an agreement for Renault Group to acquire the stakes held by Volvo Group (45%) and CMA CGM Group (10%), giving the French carmaker full ownership of the venture.
The transaction is subject to regulatory approval, but its strategic logic is straightforward. For Renault, whose Trucks division is already committed to distributing Flexis vehicles from 2027 onwards, consolidating control removes the friction inherent in any multi-party governance structure and provides the company with clearer authority over one of its most consequential electrification bets. For Volvo Group and CMA CGM, the exit represents a renegotiation of priorities rather than a disavowal of electric commercial vehicles.
Crucially, the product ambition is unaltered. Flexis remains committed to the full development and industrialisation of its next generation of fully electric light commercial vehicles, and Volvo Group will continue as a commercial partner, with Renault Trucks set to distribute the vehicles from 2027 onwards. The change is one of governance, not direction.
A new era of leadership at Flexis
Coinciding with the ownership transition, Philippe Divry has stepped down as CEO by mutual agreement with the Flexis board, handing the role to Krishnan Sundararajan effective February 23, 2026. Sundararajan, who previously served as the company's chief operating officer, is therefore a known quantity within the organisation rather than an outside appointment.
Divry, who oversaw the launch of Flexis and shepherded it through its formative years, was characteristically measured in his farewell. "What the teams have achieved over the past years makes me immensely proud. This agreement represents a transformative moment for Flexis. It secures the long-term financing, industrial resources, and commitment needed to bring our new range of electric vehicles to market and truly reshape urban logistics. I have complete confidence in Krishnan's leadership as we enter this new phase of the Flexis story. I wish him and Flexis team the very best."
The transition from Divry to Sundararajan carries its own symbolic weight. The outgoing CEO was the architect of the joint venture model; the incoming one is the architect of the industrial machine beneath it.
In his previous role, Sundararajan was the executive most intimately connected with the company's skateboard platform strategy, its 800-volt electrical architecture, and the modular manufacturing logic designed to support three vehicle variants from a single production line. His elevation to the top role signals that Flexis is moving from the phase of formation to the phase of execution.
Sundararajan acknowledged the shift in register directly: "We are now ready to accelerate and scale. The agreement solidifies our ability to execute our ambitions: starting with delivering Renault Trafic Van E-Tech electric from and establishing leadership in sustainable light commercial vehicles. Our teams are energised and fully committed to this mission. With Renault's backing and Volvo Group's continued partnership, we have everything we need to succeed."
Product roadmap unchanged, but now better-funded
For fleet operators and industry observers, the most pertinent question raised by any ownership change is whether the underlying product commitments survive it. In Flexis' case, the answer appears to be an unambiguous yes. The company's three electric van models, built around a shared native skateboard platform with a highly modular architecture, remain on track. The Renault Trafic Van E-Tech electric is the first vehicle named explicitly as part of the delivery sequence.
Flexis has developed a production model centred on Renault's Sandouville plant in France, with European battery sourcing from two separate suppliers and a manufacturing approach designed to deliver competitive pricing through high degrees of component commonality across vehicle types. That architecture is not touched by the change in ownership. If anything, full Renault backing removes the financing uncertainty that always attends a joint venture dependent on the continued alignment of three separate corporate agendas.
From joint venture to single-parent company
The broader context for this transaction is a European electric commercial vehicle market that remains both enormous in its long-term potential and demanding in its near-term execution requirements. Urban logistics is being reshaped by tightening emissions regulations in major European cities, and the fleet operators who will ultimately buy these vehicles are increasingly requiring supplier partners capable of delivering at scale, with consistent support and proven industrial backing.
Renault Group's full ownership of Flexis addresses precisely that requirement. A joint venture, however well-structured, introduces complexity into customer conversations, supply chain commitments and long-term investment decisions. A single-parent structure simplifies each of those dimensions and, given that Renault Trucks is already the planned distribution partner, creates a more coherent commercial proposition from factory gate to fleet operator.
The question that now falls to Sundararajan is one of delivery. The platform is built, the distribution partner is in place, the governance structure has been simplified, and the funding, in Renault's hands, has been secured. What remains is the hardest part: executing series production at competitive cost and volume in a segment where margins are tight and the tolerance for delay is low. On that measure, the appointment of an operations-focused CEO, rather than a dealmaker, may prove to be the most telling signal of all.
