Daimler and Volvo to further collaboration in digital sphere

Daimler Truck and Volvo Group share an ambition to lead the digital transformation to software-defined heavy-duty commercial vehicles.

That’s the message accompanying the recent announcement that both companies have reached a preliminary agreement to establish a joint venture to develop a common software-defined vehicle platform and dedicated truck operating system, providing the basis for future software-defined commercial vehicles.

The intention is to make the new joint venture a leading developer of standardised hardware and software.

This technical basis will then enable Daimler Truck and Volvo Group and potentially other partners to provide differentiating digital vehicle features for its products ultimately enhancing customer efficiency and experience.

Daimler Truck and Volvo Group intend to be 50/50 partners in the joint venture, which will operate as an independent entity, with Daimler Truck and Volvo Group continuing to be competitors in all other areas of business.

In the context of the already heavy-investments into the transformation towards CO₂-neutral drive technologies, cooperation on digital technology development has become even more vital to best meet development objectives and customer expectations within a feasible timeframe.

“Just as important as the transformation towards CO₂-neutral drive technologies is the digitalisation in the vehicle,” said Martin Daum, CEO of Daimler Truck.

“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. Together with the Volvo Group we can develop a benchmark truck operating system and set an industry standard.”

Volvo Group and Daimler Truck are two individually great companies combining forces to accelerate the customer benefits, according to Martin Lundstedt, Volvo Group President and CEO, that a software-defined truck platform will bring.

“Given the rapid transformation of our industry, it makes sense to collaborate to accelerate development, increase volumes and share cost,” he said.

“Software-defined heavy-duty trucks represent a paradigm shift in the transformation of our industry. Making the truck a programmable device with standardised hardware and operating system for fast product updates will give both companies the opportunity to create value for our customers and their customers though differentiating digital services and solutions.”

Lundstedt added, “Partnership is truly the new leadership.”

The joint venture is set to be headquartered in Gothenburg, Sweden, incorporating existing assets and resources of both companies into the new organisation.

The goal of both shareholders is to set the industry standard for a truck operating system and offer its products to other OEMs as well.

To that end the joint venture will provide a common developer platform as a service, on top of which its customers can build differentiating software layers.

Daimler Truck and Volvo Group therefore will remain fierce competitors and continue to differentiate their complete product and services offerings, including their respective digital solutions.

Both companies will provide their own end-user applications on top of the platform to offer differentiating digital vehicle features to their respective customers.

The now signed preliminary agreement is non-binding.

A final agreement is expected within this year, with the goal to close the final transaction in Q1 2025, subject to necessary examination and approvals by the respective authorities.

In other news Cummins and Isuzu Motors Limited have launched a new 6.7-litre engine jointly developed by the two companies.

  1. Australian Truck Radio Listen Live
Send this to a friend