Mitsubishi Fuso Partners with REE Automotive on Software-Defined Vans
Mitsubishi Fuso Truck and Bus Corporation enters a strategic collaboration with REE Automotive to integrate software-defined vehicle architecture and x-by-wire controls into next-generation medium-duty electric delivery vans for the U.S. market. This partnership leverages REE’s flat modular chassis with in-wheel motors to enable customizable payloads up to 10,000 pounds and a 200-mile range on 80 kWh batteries. The development addresses rising demand for urban logistics solutions amid a 30 percent drop in overall U.S. EV registrations to 74,835 units in October, per Cox Automotive data, following the federal tax credit’s expiration. Initial prototypes target 2027 production at Fuso’s Mount Holly, New Jersey facility, with annual volumes projected at 5,000 units.
REE’s platform positions four independent electric motors, each rated at 100 kW peak power, directly in the wheels, eliminating traditional drivelines and freeing underbody space for 60 cubic feet of cargo volume. The x-by-wire system replaces mechanical linkages with electronic steering, braking, and suspension, processed by a central ECU handling 1,000 inputs per second for dynamic load balancing. Fuso contributes its eCanter-derived powertrain, refined with bidirectional charging at 10 kW to support grid services during off-peak hours. Testing protocols include 100,000-mile durability cycles simulating last-mile routes in Los Angeles and New York, focusing on thermal management for ambient temperatures from 0 to 110 degrees Fahrenheit.
This alliance builds on REE’s $100 million funding round in September, backed by investors including Tenneco and HD Hyundai, to scale U.S. manufacturing. The vans qualify for commercial clean vehicle credits up to $40,000 under the Inflation Reduction Act, contingent on North American assembly meeting 60 percent domestic content. Fuso’s existing eCanter fleet, with 500 units deployed in California since 2022, provides real-world data on regenerative braking recovering 25 percent of energy in stop-go traffic. Integration timelines call for software validation by mid-2026, using over-the-air updates for fleet-wide optimizations like route-specific torque vectoring.
Medium-duty EV adoption in the U.S. logistics sector reached 12 percent penetration through Q3 2025, totaling 15,000 units, according to S&P Global Mobility, driven by mandates in states like New Jersey requiring zero-emission deliveries by 2030. REE’s corner units, weighing 200 pounds each, reduce vehicle curb weight by 15 percent compared to conventional axles, improving efficiency to 2.5 miles per kWh. Fuso plans to incorporate REE tech into its 6.5-ton class lineup, expanding from current 3-ton eCanter models with 80-mile ranges. Supply chain partnerships secure lithium-iron-phosphate cells from AESC, ensuring 95 percent uptime in telematics-monitored operations.
The collaboration counters broader industry headwinds, where Ford and GM report 40 percent sales declines for electric trucks in Q4 due to subsidy losses. Amazon’s Rivian van order, now at 100,000 units with 95 percent fulfillment, sets benchmarks for scalability that Fuso aims to match through REE’s modular design allowing 20-inch wheel swaps for varied terrains. Regulatory compliance includes FMVSS 121 braking standards, validated via 500-stop fade tests from 60 mph. Economic modeling forecasts $150 million in annual savings for fleets via reduced maintenance, as x-by-wire eliminates 80 percent of hydraulic components.
REE’s software stack, running on Nvidia Orin processors with 254 TOPS compute power, enables Level 4 autonomy readiness for geofenced depots, integrating with platforms like Motional for sensor fusion from 12 lidar units. Fuso’s engineering team, numbering 200 in the U.S., relocates 50 specialists to Georgia for joint R&D, funded by a $50 million Mitsubishi commitment. This move diversifies from diesel-heavy portfolios, where Fuso’s internal combustion vans still comprise 70 percent of 2025 North American sales. Pilot deployments with UPS target 100 units in Q1 2027, tracking metrics like 99 percent delivery on-time rates.
U.S. infrastructure expansions, including Electrify America’s addition of 500 commercial chargers in November, support the vans’ 150 kW DC fast-charging for 100 miles added in 30 minutes. BloombergNEF projects medium-duty EVs capturing 40 percent market share by 2030, up from 5 percent in 2025, contingent on battery costs falling to $90 per kWh. The partnership includes intellectual property sharing for future applications in school buses and refuse trucks, potentially adding 2,000 units yearly. This initiative positions Mitsubishi Fuso to reclaim 8 percent segment share from competitors like Freightliner, emphasizing software over hardware in a $20 billion annual market.
