Volvo Group and Daimler Truck have signed a binding agreement to establish a new joint venture which aims to lead the field in software architecture and launch “a new era of self-optimizing trucks”.
The joint venture, which will be based in Gothenburg, Sweden, will develop a common software-defined vehicle platform and dedicated truck operating system for HGVs which will be on offer to other truck manufacturers.
The platform will enable Volvo Group and Daimler Truck and future customers of the joint venture to provide stand-alone digital vehicle functions for their products.
The joint venture’s activities will include the specification and procurement of centralised high-performance control units for commercial vehicles capable of handling large amounts of data.
The new company will develop an operating system and tools which vehicle manufacturers can use as a basis to develop their own differentiating digital vehicle features.
The joint venture said this will decouple software and hardware development cycles in the future and enable customers to purchase and update digital applications wirelessly.
The transaction for the joint venture is expected to be completed in the first half of 2025, subject to regulatory approvals.
Announcing the agreement, Volvo Group and Daimler Truck said they will remain competitors in all other business areas and will continue to focus on an independent product and service offering, including the respective differentiating digital customer offerings.
Karin Rådström, Daimler Truck chief executive (pictured left), said: “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,”
Martin Lundstedt, Volvo Group president and chief executive (pictured right), 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 a greater performance. It is a revolutionary response to the challenges of our modern world, and we are proud to be setting the industry standard.”
