Volvo Group and Daimler Truck have signed a binding agreement to establish a joint venture headquartered in Gothenburg to formalizing their plan to develop a software-defined vehicle platform. It aims to set a new industry standard in digital transformation for commercial vehicles, focusing on safety, connectivity, and efficiency.
The joint venture’s platform will enable Volvo, Daimler, and potentially other future customers to deliver independent digital functions within their vehicles. This will include the development of a truck-specific operating system, allowing manufacturers to design customizable digital features while decoupling software from hardware development. The setup will enable vehicles to receive over-the-air software updates, enhancing both user experience and operational efficiency.
Karin Rådström, CEO of Daimler Truck, highlighted the venture’s transformative potential, noting that it will “achieve unprecedented levels of safety, comfort, and efficiency for our customers.” Martin Lundstedt, President and CEO of Volvo Group, emphasized the aim to simplify operations, facilitating greater connectivity and higher performance.
The venture will oversee the specification and acquisition of high-performance control units dedicated to commercial vehicles, capable of managing vast data volumes. It will also provide tools and an operating system to support digital innovation in commercial vehicles, aligning with emerging market demands for advanced software solutions.
Though partners in this initiative, Volvo and Daimler Truck will continue as competitors, each maintaining distinct product lines and digital solutions. Completion of the joint venture is expected by the first half of 2025, pending regulatory approvals.
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