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Volvo and Daimler to establish joint software company in Gothenburg

Volvo and German truck maker Daimler Truck have announced they intend to form a joint-venture to develop a software-defined vehicle platform. The new company will be headquartered in Gothenburg.

Volvo Trucks
Photo: Volvo Trucks

The two companies, both leaders in the commercial vehicle industry, intend to be 50/50 partners in the joint venture. It will operate as an independent entity, with Volvo Group and Daimler Truck continuing to be competitors in all other areas of business.

“Volvo Group and Daimler Truck are two individually great companies. Now we are combining our forces to accelerate the customer benefits that a software-defined truck platform will bring. Given the rapid transformation of our industry, it makes sense to collaborate to accelerate development, increase volumes and share cost,” said Martin Lundstedt, Volvo Group President and CEO, in a press release. 

The aim is to start the new company in 2025. It will be headquartered in Gothenburg, where the Volvo Group has its global headquarters.  Both companies have signed a non-binding preliminary agreement, with a final agreement expected within this year. 

“Just as important as the transformation towards CO2-neutral drive technologies is the digitalization in the vehicle. 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,” said Martin Daum, CEO of Daimler Truck, in the press release. 

The two companies already have partnerships in place. The fuel-cell joint venture Cellcentric was started in 2021. Together with the Traton Group, the companies are also involved in the joint-venture Milence to install and operate public charging network for electric trucks and coaches.  

Volvo was founded in Gothenburg in 1927. The Volvo Group employs more than 100,000 people and serves customers in almost 190 markets. In 2023, net sales amounted to SEK 553 billion (EUR 48 billion).

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