Daimler Truck and Volvo Group Sign An Agreement

Daimler Truck and Volvo Group Join Forces to Lead Digital Transformation of Heavy-Duty Commercial Vehicles

Gothenburg, Sweden / Leinfelden-Echterdingen, Germany – Daimler Truck and Volvo Group, two titans in the commercial vehicle industry, have announced a joint venture aimed at pioneering the shift towards software-defined heavy-duty commercial vehicles. This ambitious collaboration seeks to enhance customer efficiency and experience through the development of a cutting-edge vehicle platform.

Vision for the Future

Both companies share the ambition to become the frontrunners in the digital transformation of heavy-duty vehicles. By establishing a joint venture, Daimler Truck and Volvo Group intend to create a common software-defined vehicle platform and a dedicated truck operating system. This platform will provide a standardized technical foundation, allowing both companies and potential future partners to offer unique digital vehicle features.

Joint Venture Details

Ownership: The new entity will be a 50/50 joint venture.
Headquarters: The joint venture will be headquartered in Gothenburg, Sweden.
Operations: While Daimler Truck and Volvo Group will be partners in this venture, they will remain competitors in all other business areas.
Independence: The joint venture will operate as an independent entity.
Leadership Perspectives
Martin Daum, CEO of Daimler Truck, emphasized the importance of digitalization in vehicles, stating, “Developing a common software-defined vehicle platform with Volvo Group will enable us to turn our vehicles into a programmable device. This will allow us to build differentiating digital vehicle features with significantly greater speed and efficiency.”

Strategic Importance

The collaboration is particularly significant given the heavy investments both companies are making towards CO2-neutral drive technologies. By sharing the costs and accelerating development through this partnership, Daimler Truck and Volvo Group aim to meet development objectives and customer expectations more effectively.

Industry Standard and Customer Benefits

Martin Lundstedt, Volvo Group President and CEO, highlighted the benefits of collaboration, noting, “Combining our forces to accelerate the customer benefits that a software-defined truck platform will bring is crucial. Software-defined heavy-duty trucks represent a paradigm shift in our industry, offering both companies the opportunity to create value through differentiating digital services and solutions.”

The joint venture aspires to establish the benchmark for truck operating systems and plans to extend its offerings to other Original Equipment Manufacturers (OEMs).The venture will provide a common developer platform as a service, allowing customers to build unique software layers on top.

Both companies will continue to differentiate their complete product and service offerings, including their respective digital solutions. They will provide their own end-user applications to offer unique digital vehicle features to their customers.

Looking Ahead

The preliminary agreement, currently non-binding, marks the beginning of this transformative journey. A final agreement is expected within this year, with the goal to close the transaction in Q1 2025, subject to necessary examinations and approvals by the respective authorities.

This partnership between Daimler Truck and Volvo Group represents a significant leap towards the future of heavy-duty commercial vehicles, combining their strengths to lead the industry into the digital age. The joint venture’s mission to create a benchmark truck operating system underscores their commitment to innovation and customer-centric solutions.