Volvo Group and Daimler Truck, two of the biggest players in the commercial vehicle sector, have signed a binding agreement to establish a joint venture aimed at developing a next-generation software-defined vehicle (SDV) platform.
This new initiative, announced in May 2024, will create a dedicated truck operating system that will set the foundation for future SDVs. Headquartered in Gothenburg, Sweden, the joint venture will play a pivotal role in advancing digital transformation within the industry.
Building The Future Of Digital Trucks
The joint venture aims to deliver a versatile vehicle platform that can enable both companies, and potentially other future partners, to offer stand-alone digital vehicle functions. The innovative platform will be integral in achieving higher safety, comfort, and efficiency for commercial vehicles.
Key Features Of SDV Platform
The SDV platform is designed to enhance digital capabilities, providing manufacturers with centralised high-performance control units capable of processing large volumes of data. A standout feature of the new operating system is its ability to decouple software from hardware development cycles, enabling seamless over-the-air updates for digital applications. This will allow for constant optimisation, benefiting both customer experience and operational efficiency.
Volvo Group and Daimler Truck will retain their competitive edge and maintain distinct product and service offerings, including their proprietary digital solutions, while leveraging the shared platform for their respective SDVs. The transaction is expected to be finalised by the first half of 2025, pending regulatory approvals.
Karin Rådström, CEO of Daimler Truck, said, '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.'
Martin Lundstedt, President and CEO of the Volvo Group, stated, “We are joining forces to redefine software architecture and pioneer a new era of self-optimising trucks. Together, we are removing complexity to allow our customers to unlock higher levels of connectivity, safety, and efficiency.'
Past Collaborations
Volvo Group and Daimler Truck have a history of collaborative ventures aimed at sustainable transportation:
Fuel Cell Joint Venture (cellcentric):In March 2021, the companies launched 'cellcentric', a 50/50 venture focused on developing and commercialising fuel cell systems for heavy-duty vehicles and other applications. The initiative aims to establish a leadership position in the global fuel cell market, driving the shift towards CO2-neutral transport.
High-Performance Public Charging Network: In July 2022, Volvo Group, Daimler Truck, and TRATON Group formed a joint venture to establish a high-performance public charging network across Europe. This initiative aims to support the adoption of battery electric long-haul trucks and coaches by ensuring a robust charging infrastructure. These collaborations underline both companies' commitment to leading innovation in sustainable commercial vehicle solutions.
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