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Volvo Group and Daimler Truck sign binding agreement for joint venture to develop software-defined vehicle platform

• Volvo Group and Daimler Truck have signed a binding agreement to establish a new 50/50 joint venture to develop a software-defined vehicle platform for heavy duty vehicles and drive the industry transformation.
• The new company aims to set an industry standard with headquarters in Gothenburg, Sweden.
• The common goal of the partners is to develop a truck operating system and to offer the joint venture's brand- and versatile application-agnostic products to other commercial vehicle OEMs.
• Volvo Group and Daimler Truck will remain competitors in all other business areas and will continue to focus on an independent product and service offering, including the respective differentiating digital customer offerings.

Gothenburg, Sweden/Leinfelden-Echterdingen, Germany - As announced in May this year, Volvo Group and Daimler Truck intend to create 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 two leading companies in the commercial vehicle industry have now signed a binding agreement to establish the joint venture and are working towards setting up the company that will be headquartered in Gothenburg, Sweden.

The software-defined vehicle platform will enable Volvo Group and Daimler Truck and potential other future customers of the joint venture to provide stand-alone digital vehicle functions for their products. 

Leading the digital transformation

“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,” says Karin Rådström, CEO of Daimler Truck.

Martin Lundstedt, President and CEO of the Volvo Group, adds: “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 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.”

The joint venture’s activities will include the specification and procurement of centralized 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. 

Volvo Group and Daimler Truck 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.