Daimler Truck, Volvo Group In Deal To Form JV For Software-defined Vehicle Platform

(RTTNews) - Commercial vehicle makers Daimler Truck Holding AG (DTRUY) and AB Volvo (VOLVY.PK) announced Friday a preliminary agreement to establish a joint venture for a software-defined vehicle platform to amplify digital transformation.

The software-defined vehicle platform and truck operating system are expected to provide the basis for future software-defined commercial vehicles.

The new company is intended to be a 50/50 joint venture to be headquartered in Gothenburg, Sweden, incorporating existing assets and resources of both companies.

The now signed preliminary agreement is non-binding, and the companies expect to enter a final agreement within this year, with the goal to close the final transaction in the first quarter of fiscal 2025, subject to necessary examination and approvals by the respective authorities.

The JV will be a developer of standardized hardware and software, which will then enable Daimler Truck and Volvo Group and potentially other partners to provide differentiating digital vehicle features for its products.

It will operate as an independent entity, with Daimler Truck and Volvo Group continuing to be competitors in all other areas of business.

Martin Daum, CEO of Daimler Truck, said, "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."