Daimler Truck and Volvo Group Partner in Joint Venture to Lead Digital Transformation of Commercial Vehicles

Daimler Truck and Volvo Group Partner in Joint Venture to Lead Digital Transformation of Commercial Vehicles

(IN BRIEF) Daimler Truck and Volvo Group have signed a binding agreement to create a 50/50 joint venture focused on developing a software-defined vehicle platform for heavy-duty vehicles. This new company, based in Gothenburg, Sweden, aims to set a new standard in the industry by creating a flexible truck operating system that can be used by other commercial vehicle manufacturers. While collaborating on this project, both companies will continue to compete in other business areas. The joint venture aims to enhance safety, comfort, and efficiency through advanced software and hardware solutions, allowing over-the-air updates for digital features. The transaction is expected to finalize in the first half of 2025, subject to regulatory approvals.

(PRESS RELEASE) GOTHENBURG/LEINFELDEN-ECHTERDINGEN, 28-Oct-2024 — /EuropaWire/ — Daimler Truck and Volvo Group have formalized a binding agreement to establish a 50/50 joint venture aimed at developing a software-defined vehicle platform specifically for heavy-duty vehicles, marking a significant step in the industry’s digital transformation. The new venture, headquartered in Gothenburg, Sweden, seeks to establish a new industry standard by creating a versatile truck operating system, designed to be application-agnostic and available to other commercial vehicle manufacturers.

This collaboration will focus on providing a robust software platform that allows Daimler Truck, Volvo Group, and future customers to develop independent digital vehicle functions. While partnering on this venture, both companies will continue to operate as competitors in all other aspects of their businesses, maintaining their distinct product offerings and unique digital solutions for customers.

The initiative, initially announced in May 2024, aims to provide the foundation for software-defined vehicles that can adapt and evolve through digital upgrades. With a dedicated focus on improving safety, comfort, and operational efficiency, the joint venture’s efforts are poised to transform the landscape of commercial vehicle technology.

Karin Rådström, CEO of Daimler Truck, emphasized the importance of this partnership, stating, “This agreement signifies our mutual commitment to leading the digital transformation in the commercial vehicle industry. The software and hardware solutions developed through this venture will be pivotal in delivering unprecedented levels of safety, comfort, and efficiency to our customers.”

Martin Lundstedt, President and CEO of Volvo Group, highlighted the innovative nature of the collaboration, adding, “By combining our expertise, we are reshaping software architecture to enable a new generation of self-optimizing trucks. This partnership aims to reduce complexity, elevate connectivity, and drive advancements in safety and efficiency, setting a new industry benchmark.”

The joint venture’s scope includes the development and acquisition of high-performance, centralized control units capable of processing large data volumes for commercial vehicles. It will also focus on creating a modular operating system, enabling vehicle manufacturers to design their own custom digital features. This platform will decouple software and hardware development, facilitating wireless ‘over the air’ updates and enhancing customer experience and operational efficiency.

Daimler Truck and Volvo Group plan to complete the joint venture transaction in the first half of 2025, pending regulatory approvals, with the shared ambition of shaping the future of digitally driven commercial vehicles.

Media Contact:

Paul Mandaiker

Spokesperson Technology & Regulations

paul.mandaiker​@daimlertruck.com
+49 176 30999267

SOURCE: Daimler Truck AG