REE Automotive Ltd. and Mitsubishi Fuso Truck and Bus Corporation entered into a memorandum of understanding on 18 November 2025 to collaborate on a software‑defined vehicle (SDV) that will convert a Mitsubishi Fuso eCanter electric truck into a fully cloud‑connected, upgradable platform. The agreement includes a one‑year evaluation phase during which REE’s zonal SDV architecture and x‑by‑wire technology will be integrated and tested on the eCanter chassis.
The partnership is a key milestone for REE, which has been pivoting from a hardware‑centric model to a software‑centric, licensing‑based business. By securing a MoU with a major OEM, REE gains a real‑world validation of its technology and a potential pathway to future supply contracts that could generate recurring revenue. The deal also signals confidence from a large commercial‑vehicle manufacturer, which may improve investor perception of REE’s strategic direction.
REEs recent strategic adjustments—cost‑cutting measures announced in June 2025, a workforce reduction, and a pause in its own production plans—were designed to extend the company’s financial runway and focus resources on software development. These moves underscore the urgency of securing OEM partnerships like the one with Mitsubishi Fuso to offset declining revenues and negative profit margins that have raised concerns among analysts.
Mitsubishi Fuso, which is majority owned by Daimler Truck AG, has been deploying its eCanter electric light‑duty truck since 2017. The eCanter serves as an ideal testbed for the SDV conversion because it already incorporates electric propulsion and a modular architecture that can accommodate REE’s by‑wire systems. The MoU therefore represents a strategic step for Fuso toward a broader shift to software‑defined, upgradable trucks.
REE’s technology stack—centered on a zonal SDV architecture that replaces traditional mechanical linkages with x‑by‑wire controls—offers several advantages. The P7‑C platform is the first FMVSS‑certified by‑wire commercial truck in the United States, and REE’s solutions include built‑in cybersecurity, AI‑driven serviceability, and continuous over‑the‑air updates. These features position REE to provide a scalable, cloud‑connected platform that can be licensed across multiple vehicle platforms.
While the MoU does not immediately translate into revenue, it opens a pathway for REE to monetize its technology through licensing and partnership models. Analysts note that REE’s financial performance remains a concern, but the partnership with Mitsubishi Fuso could strengthen the company’s long‑term value proposition by demonstrating the commercial viability of its SDV platform and potentially attracting additional OEM customers.
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