Volvo Group and Daimler Truck have confirmed they have signed a binding agreement to establish a new 50/50 joint venture that will result in the development of a software-defined vehicle platform for heavy duty vehicles.
The new company will establish headquarters in Gothenburg, Sweden, with the common goal being to develop a truck operating system and to offer the joint venture’s brand and versatile application agnostic products to other manufacturers.
Volvo and Daimler have confirmed they’ll both remain competitors in all other business areas and will continue focusing on independent product and service offerings.
“We are joining forces to redefine software architecture and pioneer a new era of self-optimising 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,” Volvo Group CEO and president Martin Lundstedt says.
“It is a revolutionary response to the challenges of our modern world, and we are proud to be setting the industry standard.”
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The joint venture will include the specification and procurement of centralised high-performance control units dedicated for commercial vehicles, with the new company to develop an operating system and tools which 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.
“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,” Daimler Truck CEO Karin Rådström says.
The transaction for the joint venture is expected to be completed in the first half of 2025, subject to obtaining all required regulatory approvals.
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