Volvo Group and Daimler Truck have signed an agreement that establishes a joint venture to develop a common software-defined vehicle platform and dedicated truck operating system for heavy duty vehicles, formally kickstarting a deal the two companies announced in May.
Volvo and Daimler will be 50/50 partners in the Gothenburg, Sweden, headquartered company that hopes to develop a truck operating system and offer the joint venture's brand- and application-agnostic products to other commercial vehicle OEMs.
The software and hardware from this joint venture will be crucial for achieving unprecedented levels of safety, comfort, and efficiency for our customers," said Daimler Truck CEO Karin Rådström.
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.
"We are joining forces to redefine software architecture and pioneer a new era of self-optimizing trucks," said Martin Lundstedt, president and CEO of the Volvo Group. "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."
This isn't the first venture the two truck makers have formed in recent history.
The two commercial truck giants in 2020 established a joint venture to develop hydrogen fuel cells. That joint venture, named cellcentric, included operations in Nabern, Germany, headquarters of the Mercedes-Benz Fuel Cell, with production facilities in Germany and Canada. 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.
