Daimler and Volvo form JV to develop software-defined vehicle platform

Now, Daimler Truck and Volvo Group have signed a binding agreement to establish the JV and are working towards setting up the company that will be headquartered in Gothenburg, Sweden.

The software-defined vehicle platform will enable Daimler Truck and Volvo Group – and potentially other future customers of the joint venture – to provide stand-alone digital vehicle functions for their products.

“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, CEO of Daimler Truck, in a press release.

The joint venture’s activities will include the specification and procurement of centralised high-performance control units dedicated for commercial vehicles and capable of handling large amounts of data. The new company will develop an operating system and tools which vehicle manufacturers can use as a basis to develop their own differentiating digital vehicle features. 

“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 levels of connectivity, safety and efficiency and continually push for a greater performance. It is a revolutionary response to the challenges of our modern world, and we are proud to be setting the industry standard,” adds Martin Lundstedt, President and CEO of the Volvo Group.

The transaction for the joint venture is expected to be completed in the first half of 2025, subject to obtaining all required regulatory approvals.