As two prominent players in the commercial vehicle industry, Volvo Group and Daimler Truck are united in their goal to lead the digital shift towards software-defined heavy-duty commercial vehicles. To strengthen their efforts, they have preliminarily agreed to establish a joint venture. This venture aims to create a shared platform and specialized operating system for trucks, paving the way for future software-defined commercial vehicles. The aim is for the joint venture to become a leading developer of standardized hardware and software, enabling Volvo Group, Daimler Truck, and potentially other partners to offer unique digital features, enhancing customer efficiency and satisfaction.
CO2-neutral drive technologies
Volvo Group and Daimler Truck plan to be equal partners in the joint venture, which will function as an independent entity. Both companies will continue to compete in all other aspects of their businesses. Given the significant investments already made in transitioning towards CO2-neutral drive technologies, collaboration on digital technology development is seen as increasingly crucial. This collaboration aims to ensure that development goals and customer expectations are met within a practical timeframe.
Software-defined truck platform
President and CEO for Volvo Group President, Martin Lundstedt says “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.”
CO2-neutral drive technologies
CEO for Daimler Truck, Martin Daum says “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’s headquarters will be based in Gothenburg, Sweden, merging the existing assets and resources of both companies into the new organization. Both shareholders aim to establish the industry standard for a truck operating system and extend its products to other OEMs. To achieve this goal, the joint venture will offer a common developer platform as a service, allowing customers to create unique software layers.
Unique end- user applications
Volvo Group and Daimler Truck will continue as strong competitors, maintaining their distinct product and service offerings, including digital solutions. Each company will develop its own end-user applications on the platform to provide unique digital features to their customers.
The recently signed preliminary agreement is non-binding. A final agreement is anticipated later this year, with the objective of completing the transaction in Q1 2025, pending necessary examinations and approvals by relevant authorities.
Source: https://www.itnewsafrica.com/2024/05/volvo-group-and-daimler-truck-partner-for-vehicle-software/