Daimler Truck and Volvo to form a joint venture in view of shared software-defined vehicle platform

Daimler Truck and Volvo intend to form a joint venture aimed at jointly building software-defined vehicle platform and amplify digital transformation. The new company is intended to be a 50/50 joint venture to be headquartered in Gothenburg, Sweden. According to the official statements, the intention is to make the new joint venture a leading developer of standardized 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. 

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. 

Official statements from Daimler Truck and Volvo

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

Martin Lundstedt, Volvo Group President and CEO added: “Volvo Group and Daimler Truck are two individually great companies. Now we are combining our forces to accelerate the customer benefits 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. Software-defined heavy-duty trucks represent a paradigm shift in the transformation of our industry. Making the truck a programmable device with standardized 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. Partnership is truly the new leadership.”