IN A move to lead the digital transformation of heavy-duty commercial vehicles, Volvo Group and Daimler Truck have announced a preliminary agreement to form a joint venture.
The new entity aims to develop a common software-defined vehicle platform and dedicated truck operating system, laying the groundwork for future software-defined commercial vehicles. The joint venture will focus on developing standardized hardware and software, allowing both companies, and potentially other partners, to create differentiated digital features for their vehicles, ultimately enhancing customer efficiency and experience.
The 50/50 joint venture will be headquartered in Gothenburg, Sweden,and will operate as an independent entity, with both companies continuing to compete in all other business areas. This collaboration comes amidst heavy investments in CO2-neutral drive technologies and aims to accelerate the development of digital technology to meet evolving customer expectations.
Martin Lundstedt, Volvo Group President and CEO, emphasized the importance of this partnership, stating: “Given the rapid transformation of our industry, it makes sense to collaborate to accelerate development, increase volumes and share cost. 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.”
Martin Daum, CEO of Daimler Truck, echoed this sentiment, highlighting the significance of digitalization alongside the transition to CO2-neutral drive technologies. He stated:
“Developing a common software-defined vehicle platform with Volvo Group will enable us to turn our vehicles into a programmable device. 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. Together with the Volvo Group we can develop a benchmark truck operating system and set an industry standard.”
The joint venture plans to incorporate existing assets and resources from both companies and aims to offer its products to other original equipment manufacturers (OEMs). It will provide a common developer platform as a service, upon which customers can build differentiating software layers. Volvo Group and Daimler Truck will continue to offer their own end-user applications and differentiate their complete product and service offerings, including digital solutions.
The preliminary agreement is non-binding, with a final agreement expected within the year and the transaction expected to close in the first quarter of 2025, subject to regulatory approvals.
