Volvo Group and commercial vehicle manufacturer Daimler Truck have announced their intention to collaborate on a joint venture (JV) to spearhead the digital transformation of heavy-duty commercial vehicles through a software-defined vehicle (SDV) platform.
With a shared vision, Volvo Group and Daimler Truck aim to establish a joint venture to develop a common SDV platform and dedicated truck operating system. This initiative seeks to lay the groundwork for future software-defined commercial vehicles, with a focus on enhancing customer efficiency and experience through differentiated digital vehicle features.
The proposed joint venture, anticipated to be a 50/50 partnership, will operate independently and be headquartered in Gothenburg, Sweden. It comes amid widespread investments in CO2-neutral drive technologies, which the companies say highlight the increasing importance of cooperation in digital technology development to meet development objectives and customer expectations.
Martin Lundstedt, Volvo president and CEO, said, “We are combining our forces to accelerate the customer benefits that a software-defined truck platform will bring.
“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 through differentiating digital services and solutions.”
The joint venture aims to leverage existing assets and resources from both companies to establish itself as an industry leader in standardized hardware and software development. Additionally, it plans to offer its solutions, including a truck operating system, to other original equipment manufacturers (OEMs).
While Volvo Group and Daimler Truck will jointly develop the platform, they will maintain competition in their complete product and service offerings, including digital solutions. Both companies will continue to provide their end-user applications on top of the platform, allowing for differentiated digital vehicle features tailored to their respective clientele.
Martin Daum, CEO of Daimler Truck, added, “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.”
The preliminary agreement, although non-binding, sets the stage for final negotiations expected to conclude within the year. Pending necessary examination and approvals from regulatory authorities, the final transaction is anticipated to be completed in the first quarter of 2025.
