Truck makers Volvo and Daimler agree on software joint venture

Volvo Group (the parent company of Volvo Trucks and Renault Trucks) and Daimler Truck (Mercedes-Benz Trucks) have signed a binding agreement for their new joint venture to develop a software-defined vehicle platform, which was announced earlier this year. After regulatory approvals, the new company is expected to be founded in the first half of 2025.

The announcement first came in May 2024, when Volvo Group and Daimler Truck signed a preliminary agreement to form this new 50/50 joint venture. It doesn’t have a name yet, but it will be headquartered in Gothenburg, Sweden, home of Volvo Group.

Operating system and computer hardware

The main goal of this new joint venture is to create a software-defined truck operating system, which can be sold to other manufacturers. This separated hardware and software development allows for digital functions to be added later in a vehicle’s lifespan through over-the-air updates.

The joint venture will also specify and procure the necessary “high-performance control units” – in other words, computer chips – that can handle large amounts of data and are suited for commercial vehicle work.

The new company will operate independently, and Volvo and Daimler promise to stay competitors in all other segments, including digital offerings, as part of this standard operating system. Both companies already collaborate as part of Milence (the European fast-charging network for trucks) and Cellcentric (hydrogen fuel cells for trucks).

‘More safety, comfort, and efficiency for customers’

“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, Daimler Truck’s new CEO.

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 connectivity, safety, and efficiency levels and continually push for greater performance.

It is a revolutionary response to the challenges of our modern world, and we are proud to be setting the industry standard.”