Daimler Truck and Volvo AB form Joint Venture for Software-Defined Trucks

joint venture for digital technology, amid CO2-neutral drive investments, while competing in other sectors

Gothenburg, Sweden / Leinfelden-Echterdingen, Germany- Daimler Truck AG., and Volvo AB., are joining forces in a preliminary agreement to establish a joint venture for developing a common software-defined vehicle platform and truck operating system. This collaboration aims to lead the digital transformation in heavy-duty commercial vehicles, enabling enhanced efficiency and customer experience through standardized hardware and software.

Daimler Truck and Volvo Group plan to become equal partners in a joint venture focused on digital technology development, while maintaining competition in other business areas. This collaboration is crucial amid heavy investments in CO2-neutral drive technologies, aiming to meet development goals and customer expectations efficiently. 

Mr. Martin Daum, CEO of Daimler Truck said, “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.”

Mr. Martin Lundstedt, Volvo Group President and CEO said, “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.”

The joint venture between Daimler Truck and Volvo Group, headquartered in Gothenburg, Sweden, aims to set an industry standard for a truck operating system. While remaining competitors, both companies will collaborate to provide a common developer platform for OEMs and offer differentiated digital solutions to their respective customers. The preliminary agreement is non-binding, with a final transaction expected in Q1 2025 pending regulatory approvals.