The two commercial vehicle companies have now signed a binding agreement to establish a joint venture.
The software-defined vehicle platform will enable Daimler Truck and Volvo Group and potential other future customers of the joint venture to provide stand-alone digital vehicle functions for their products.
First announced back in May, the joint venture will also work towards setting up headquarters for the company in Gothenburg, Sweden.
“The signing demonstrates our joint commitment to lead the digital transformation of our industry,” said Karin Rådström, CEO of Daimler Truck.
“The software and hardware from this joint venture will be crucial for achieving unprecedented levels of safety, comfort, and efficiency for our customers.”
The joint venture’s activities will include the specification and procurement of centralised high-performance control units dedicated for commercial vehicles and 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.
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.
“We are joining forces to redefine software architecture and pioneer a new era of self-optimizing trucks, said Martin Lundstedt, President and CEO of the Volvo Group.
“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.”
Daimler Truck and Volvo Group will remain competitors and continue to differentiate their complete product and services offerings, including their respective digital solutions.
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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