Volvo Group and Daimler Truck have signed a binding agreement to form a joint venture to develop a software-defined vehicle platform and dedicated truck OS. The brands will also establish a new company that will be headquartered in Gothenburg, Sweden.
The software-defined vehicle platform will enable Volvo Group, Daimler Truck and future customers of the joint venture to provide standalone digital vehicle functions for their products.
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 OS and tools that manufacturers can use as a base to develop their own 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 leading to enhanced customer efficiency and experience. Volvo and Daimler Truck will remain competitors and continue to differentiate their complete product and service offerings.
The transaction for the joint venture is expected to be completed in the first half of 2025, subject to obtaining all required regulatory approvals. “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,” said Karin Rådström, CEO of Daimler Truck.
Martin Lundstedt, president and CEO 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.”