Iveco is ready to consider joint ventures and alliances to expand its presence in medium trucks but wants to buy a heavy truck maker, CEO Giancarlo Boschetti reportedly told the Financial Times. Iveco is one of Europe's leading manufacturers of light commercial vehicles and one of the most profitable divisions of Italy's Fiat, but it lacks sufficient scale to make much of a dent in the medium and heavy truck markets.

According to the Times, Boschetti said that consolidation in heavy trucks is a priority and that the company prefers an acquisition rather than a joint venture. "The risk of a joint venture is a stalemate and standstill between the partners," he said. "It would be better to have the command clearly defined."
He declined to name possible candidates but Fiat supposedly is talking to Germany's MAN regarding the purchase of its heavy truck business. Navistar International has also been mentioned as a possible partner but that seems to be little more than speculation at this point.
Meantime, Iveco is planning to augment its strong presence in light trucks with an aggressive move into automotive services such as finance leasing and vehicle rental. Boschetti said that service activities currently account for 3-4% of Iveco's profits but they expect that to reach 40-50% in three or four years.