Daimler Truck & Volvo Group to Establish JV to Develop Software-Defined Vehicle Platform

Daimler Truck and Volvo Group intend to create a joint venture (JV) to develop a common software-defined vehicle platform and dedicated truck operating system, providing the basis for future software-defined commercial vehicles. The two companies have signed a binding agreement to establish the JV.

They are working towards setting up the company that will be headquartered in Gothenburg, Sweden.

The software-defined vehicle platform will enable Daimler Truck and Volvo Group and potential other future customers of the JV to provide stand-alone digital vehicle functions for their products. 

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’ (OTA).

The transaction for the joint venture is expected to be completed in the first half of 2025, 

Karin Rådström, CEO of Daimler Truck, says: “The signing demonstrates our joint commitment to lead the digital transformation of our industry. The software and hardware from this joint venture will be crucial for achieving unprecedented levels of safety, comfort, and efficiency for our customers,” says Karin Rådström, CEO of Daimler Truck. 

Martin Lundstedt, President and CEO of the Volvo Group, adds: “We are joining forces to redefine software architecture and pioneer a new era of self-optimizing trucks. 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.”

Daimler Truck and Volvo Group will remain competitors and continue to differentiate their complete product and services offerings, including their respective digital solutions.