Daimler Truck, Volvo Group sign software platform development agreement

Karin Rådström and Martin Lundstedt. president and CEO, Volvo Group (Photo: Daimler Truck)

Daimler Truck and Volvo Group have signed a binding agreement to establish a new 50/50 joint venture to develop what is termed a software-defined vehicle platform and dedicated truck operating system for heavy -duty vehicles.

The signing of the agreement follows an announcement covering the planned agreement in May this year.

Developed at a location in Gothenburg, Sweden, the software-defined vehicle platform will enable the partners and future customers to benefit from standalone digital functionality designed specifically for HD vehicles.

“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,” said Karin Rådström, CEO of Daimler Truck.

The JV’s activities will include specification and procurement of centralized high-performance control units dedicated for commercial vehicles which can manage large amounts of data. This will include a new operating system and related tools for OEMS to use a basis for their own differentiating digital vehicle features.

It is also planned that the setup will decouple software and hardware development cycles and allow customers to update systems over the air to improve efficiency and customer experience.

At the same time, Daimler Truck and Volvo Group are set to remain competitors, continuing to differentiate their products and services, including respective digital solutions.