Volvo Group and Daimler Truck have preliminarily agreed to partner on a joint venture focusing on a common software-defined vehicle platform and truck operating system. With this, the two companies hope to develop standardized hardware and software for future software-defined commercial vehicles, with the ability for each company to offer differentiating digital vehicle features for their own products.
“Given the rapid transformation of our industry, it makes sense to collaborate to accelerate development, increase volumes and share cost,” said Martin Lundstedt, Volvo Group president and CEO. “Software-defined heavy-duty trucks represent a paradigm shift in the transformation of our industry. Making the truck a programmable device with standardized hardware and operating system for fast product updates will give both companies the opportunity to create value for our customers and their customers though differentiating digital services and solutions.”
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In this agreement, Volvo Group and Daimler Truck will be 50/50 partners in the joint venture, which itself will be an independent company. Otherwise, the two entities will remain competitors in all other enterprises.
“Developing a common software-defined vehicle platform with Volvo Group will enable us to turn our vehicles into a programmable device,” said Martin Daum, CEO of Daimler Truck. “It will allow us to build differentiating digital vehicle features with significantly greater speed and efficiency for our truck and bus customers around the globe.”
The new business will be headquartered in Gothenburg, Sweden, and utilize resources from both companies. However, the current agreement is non-binding, although the companies expect a final agreement this year and aim to close the transaction in Q1 2025 if approved.
