IVECO GROUP ELECTRIC VEHICLES AND DIGITALISATION

The project covers the Iveco Group investment plan in Europe over the period 2023-2025 in the areas of electrification (Battery Electric Vehicles and Hydrogen Fuel Cells), autonomous driving, safety, digitalisation and connectivity.

The project will contribute to develop innovative technology solutions for full electric and hydrogen fuel cell electric light-, medium- and heavy-duty commercial vehicles, innovative digitalization and connectivity technologies, autonomous driving technologies, safety and comfort technologies, firefighting vehicle specific technologies. It is expected to contribute to the decarbonisation and enhanced safety and sustainability of the transport sector and to further knowledge creation and sharing, through the promoter's collaboration with industrial partners, suppliers, technology companies and academia.

The project concerns the promoter's investments to develop sustainable and safer technologies for commercial and specialty vehicles, more specifically the development of innovative electrification and decarbonisation technologies, along with innovative digitalisation and automation technologies, addressing the relevant trends, needs and challenges affecting the commercial and specialty vehicle sector in the future. The project will further knowledge creation and diffusion and it is set to generate significant positive knowledge, safety, environmental and adoption externalities and to, directly and indirectly, help preserve and scale up R&D as well as manufacturing employment in Europe and therefore contribute to economic growth.

Such investments contribute to the Bank's "Innovation, Digital and Human Capital" public policy objective, a part of them also to the transversal objectives "Climate Action and Environmental Sustainability" and "Economic and Social Cohesion". EIB financing supports the promoter's investments addressing market failures and gaps associated with imperfect competition and incomplete markets for very innovative and still market-entry stage electrification, fuel-cell, vehicle automation, digitalization and connectivity technologies, and those addressed by projects with positive knowledge, environmental, safety and adoption externalities generation.

The promoter's R&D capability and well-structured organisation, its focus on product and technology R&D, innovation and sustainability, its technology edge, industrialisation capability and strong ecosystem of partners, along with its experienced management will help implement a sound and sustainable project, integrating positive environmental and social dimensions, contribute to addressing and mitigating market failures, and through its additionality, contribute to the Bank's policy objectives.

The proposed EIB loan satisfactorily meets the required funding needs of the promoter as it provides for the necessary flexibility in terms of long tenor and repayment profile, together with a sizeable financing volume. Furthermore, the EIB's involvement in the financing is expected to send a signalling effect to other potential lenders by also providing a quality stamp on the promoter's activity.

The Bank's technical contribution and advice is mainly explained by the guidance provided to align the Project scope with policy objectives at Project origination.

The R&D activities will be carried out in already existing and authorised R&D facilities. The project does not fall under any of Annexes of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU and therefore it does not require screening or an EIA Report. Nevertheless, all environmental aspects including possible environmental and operational authorisations will be reviewed during the due diligence process.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.