Kia, in collaboration with CJ Freshway, is developing eco-friendly purpose-built vehicles optimized for cold chain food distribution. This partnership aims to enhance competitiveness in the global PBV (Purpose Built Vehicle) market by offering linked solutions and services.
On the 21st at its headquarters in Yangjae-dong, Kia’s CEO Song Ho-sung, CJ Freshway’s CEO Jung Sung-phil, Kia’s eLCV Business Unit Head Kim Sang-dae, and CJ Freshway’s Distribution Business Division Head Kim Jin-joong were present for the signing of a memorandum of understanding focused on ‘PBV Development and Supply Collaboration for Food Distribution Innovation.’
This meeting follows Kia’s earlier agreements with leading domestic logistics and delivery companies such as Coupang and CJ Logistics, and it marks a continuation of efforts to strengthen PBV operations through cooperation with CJ Freshway, a leader in food distribution.
As part of this collaboration, starting next year, Kia will initially supply over 30 Bongo III EV refrigerated trucks for CJ Freshway’s transition to eco-friendly delivery vehicles. The long-term plan includes the development of a PBV that is highly optimized for CJ Freshway’s cold chain food logistics, set to begin supply in 2025.
Specifically, based on the operational experiences of CJ Freshway using the Bongo III EV refrigerated trucks, they will propose detailed requirements which Kia will integrate into the development of a dedicated PBV model. This memorandum is significant as it aims to transition CJ Freshway’s current fleet of 200 one-ton delivery vehicles to Kia’s dedicated PBVs, as well as promote the conversion of over 800 delivery vehicles owned by partner transport companies and small business owners.
In addition to PBV development, the two companies will collaborate on various solutions and technologies related to distribution innovation. This includes providing customized charging solutions, vehicle management systems for PBV operational efficiency, and the development of delivery assistance devices, implementing these in phases.
Long-term, they plan to jointly pursue projects such as the demonstration of wearable robotics to enhance operational efficiency within CJ Freshway’s logistics centers through collaboration with Hyundai Motor Group’s robotics technology and startups.
Kia’s CEO Song Ho-sung stated, “We aim to innovate the domestic food distribution market by developing cold chain specialized purpose-built vehicles and linked solutions through strategic cooperation with CJ Freshway. We will continue to identify various industrial PBV customers and provide specialized vehicles and tailored services to secure competitiveness in the PBV business.”
Earlier this year, Kia announced at the ‘2022 CEO Investor Day’ in April its intention to introduce a dedicated PBV model by 2025, providing tailored solutions and services for diverse business models and establishing itself as the No. 1 global PBV brand by 2030.
Lee Sang-jin daedusj@autodiary.kr