A joint venture partnership was recently signed between Daimler Truck and Volvo Group and will be headquartered in Gothenburg, Sweden.
The two companies are looking to develop a common software-defined vehicle platform and dedicated truck operating system, which will provide the basis for future software-defined commercial vehicles.
The software-defined vehicle platform will enable Daimler Truck and Volvo Group and potentially other future customers of the joint venture to provide stand-alone digital vehicle functions for their products.
“The signing demonstrates our joint commitment to lead the digital transformation of our industry. The software and hardware from this joint venture will be crucial for achieving unprecedented levels of safety, comfort, and efficiency for our customers,” explained Karin Rådström, the Chief Executive Officer of Daimler Truck.
Martin Lundstedt, President and Chief Executive Officer of the Volvo Group, added: “We are joining forces to redefine software architecture and pioneer a new era of self-optimizing trucks. Together we are removing complexity to allow our customers to unlock higher levels of connectivity, safety, and efficiency and continually push for greater performance. It is a revolutionary response to the challenges of our modern world, and we are proud to be setting the industry standard.”
The joint venture’s activities will include the specification and procurement of centralized high-performance control units dedicated to commercial vehicles and capable of handling large amounts of data. The new company will develop an operating system and tools that vehicle manufacturers can use as a basis to develop their own differentiating digital vehicle features.
This will decouple software and hardware development cycles in the future and enable customers to purchase and update digital applications wirelessly ‘over the air’, ultimately enhancing customer efficiency and experience.
Daimler Truck and Volvo Group will remain competitors and continue to differentiate their complete product and service offerings, including their respective digital solutions.
The transaction for the joint venture is expected to be completed in the first half of 2025, subject to obtaining all required regulatory approvals.