After announcing their intent to create a joint venture in May 2024, the Volvo Group and Daimler Truck have officially signed a binding agreement to establish a company to develop a common, software-defined vehicle platform and dedicated truck operating system.
“We are joining forces to redefine software architecture and pioneer a new era of self-optimizing trucks,” said Martin Lundstedt, president and CEO of the Volvo Group. “Together we are removing complexity to allow our customers to unlock higher levels of connectivity, safety, and efficiency and continually push for a greater performance.”
Now, the two companies will be setting up their joint venture in Gothenburg, Sweden. The venture will eventually provide stand-alone digital vehicle functions for trucks, starting with spec’ing and procuring centralized high-performance control units for commercial vehicles. Next, the company will develop an operating system and the tools necessary for OEMs to use as a basis for creating their own digital vehicle features. According to the two companies, this will decouple software and hardware development cycles for future vehicles, allowing customers to purchase and update digital applications wireless ‘over the air.’
Read more: Volvo, Daimler Truck partner to standardize software-defined truck platform
“The signing demonstrates our joint commitment to lead the digital transformation of our industry,” said Karin Rådström, CEO of Daimler Truck. “The software and hardware from this joint venture will be crucial for achieving unprecedented levels of safety, comfort, and efficiency for our customers.”
Beyond the joint venture, the Volvo Group and Daimler Truck will remain competitors. Additionally, the transactions for the joint venture are expected to be completed in the first half of 2025, subject to obtaining all regulatory approvals.
