Volvo Group and Daimler Truck Move Toward Digital Era with Joint Venture Agreement

Key Highlights:
•    Volvo Group and Daimler Truck agreed to form a joint venture for digital transformation in commercial vehicles, finalizing by Q1 2025.
•    The venture will create standardized hardware and software for advanced trucks.
•    Based in Gothenburg, it will offer a platform for other OEMs to build software.
•    Both companies will remain competitors, each developing unique applications.
•    This follows their fuel-cell venture, cellcentric, for hydrogen trucks.

Volvo Group and Daimler Truck entered a preliminary agreement to form a joint venture, marking a key step toward leading the digital transformation of the commercial vehicle industry. 

The preliminary agreement between the two companies is non-binding. This year, a definitive agreement is expected, with the transaction scheduled to finalise in Q1 2025, pending requisite clearances from appropriate authorities.

Joint Venture Aims and Objectives   

This joint venture marks a huge step forward in the evolution of the commercial vehicle sector, paving the path for more advanced, software-defined heavy-duty vehicles while also setting new industry standards for innovation and efficiency. 

It aims to become a major creator of standardised hardware and software, allowing both firms and potential partners to improve their goods with novel digital features.

Headquarters and Operational Goals

The joint company will be based in Gothenburg, Sweden, and will combine existing assets and resources from both organizations. The company's mission is to set the industry standard for a truck operating system, with intentions to sell its goods to other original equipment manufacturers (OEMs). 

The new business would offer a shared developer platform as a service, allowing clients to add their software layers on top.

Unique Applications

Volvo Group and Daimler Truck will continue to compete and differentiate their whole product and service portfolio, including digital solutions. 

Each company will create and distribute its end-user applications on top of the shared platform, providing its clients with unique digital vehicles features.

Building on Previous Collaborations

A few years ago, Volvo Group and Daimler Truck announced a plan for their fuel-cell joint venture, cellcentric, to research, manufacture, and commercialize fuel-cell systems primarily for heavy-duty vehicles.

Cellcentric aims to become a leading global manufacturer of fuel-cell systems by establishing one of Europe's largest series production facilities for fuel-cell systems, with operations beginning in 2025. 

While this initiative aims to accelerate the adoption of hydrogen-based fuel cells for long-haul trucks and other applications, the current partnership focuses on digital technology development, highlighting the importance of collaboration in meeting customer expectations and achieving development goals in the context of significant investments in CO2-neutral drive technologies.

Volvo Group and Daimler Truck intend to have equal ownership in the joint venture, which will operate as an independent business. Regardless of this agreement, both companies will continue to compete in all other business areas. 

Martin Lundstedt, President and CEO of Volvo Group, commented, "Volvo Group and Daimler Truck are two outstanding enterprises. We are now joining forces to accelerate the consumer benefits that a software-defined vehicle platform will provide. Given the rapid upheaval of our sector, it makes sense to work together to expedite development, raise volumes, and share costs. Software-defined heavy-duty trucks represent a significant shift in our business."

Daimler Truck CEO Martin Daum remarked, "Just as crucial as the transition to CO2-neutral powertrain technology is the vehicle's digitization. Developing a unified software-defined vehicle platform with Volvo Group will allow us to transform our vehicles into programmable devices. This will enable us to develop unique digital vehicle features for our truck and bus customers all around the world at a far faster and more efficient pace. Together with Volvo Group, we can create a benchmark truck operating system and establish an industry standard."

Also Read: VECV partners with iTriangle Infotech for advanced fleet management solutions

CMV360 Says

Volvo Group and Daimler Truck are teaming up to revolutionize the truck industry with digital technology. By working together, they aim to create a standard platform that can be used by others, while still competing against each other with their own unique features. This partnership is a big step towards smarter, more efficient, and customizable trucks.