Daimler Truck and Volvo intend to form software joint venture

The new company would be a 50/50 joint venture, with the deal expected to close by the first quarter of 2025, according to a preliminary non-binding agreement

German truck maker Daimler Truck and Sweden's Volvo  intend to form a joint venture to develop a software-defined vehicle platform and dedicated truck operating system, the two companies said on Friday.

The new company would be a 50/50 joint venture, with the deal expected to close by the first quarter of 2025, according to a preliminary non-binding agreement.

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.”

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.”

The joint venture is set to be headquartered in Gothenburg, Sweden, incorporating existing assets and resources of both companies into the new organization. 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.

The now signed preliminary agreement is non-binding. A final agreement is expected within this year, with the goal to close the final transaction in Q1 2025, subject to necessary examination and approvals by the respective authorities.