On October 28, 2024, Volvo Group and Daimler Truck announced the establishment of a new 50/50 joint venture dedicated to creating a software-defined platform for heavy-duty vehicles. The new company, headquartered in Gothenburg, Sweden, aims to establish an industry standard that will redefine the software architecture of commercial vehicles for the future.
This vehicle architecture relies on software to define and manage many of the vehicle's functions and capabilities. In such a platform, software plays a central role in determining how the vehicle operates and responds to various conditions, rather than depending primarily on hardware.
In the context of heavy-duty vehicles, a software-defined platform enables the development of advanced digital functionalities such as safety systems, connectivity, and performance optimization, which can be continuously updated via the internet without requiring physical intervention on the vehicle. This approach makes vehicles more flexible and adaptable to new technological needs and innovations, reducing the need for costly hardware upgrades.
The vehicle platform developed by the joint venture will be designed to offer independent digital functionalities for Volvo, Daimler, and potentially other interested manufacturers’ commercial vehicles. The initiative aims to separate software development from hardware, allowing wireless “over-the-air” digital application updates, enhancing efficiency and customer experience. The new company will focus on specifying and supplying high-performance centralized control units capable of handling large amounts of data, along with developing an operating system that vehicle manufacturers can use to build diverse digital solutions.
Martin Lundstedt, President and CEO of Volvo Group, emphasized that this collaboration marks a significant innovation for the industry: “We are joining forces to redefine software architecture and usher in a new generation of vehicles. Together, we are removing complexity to enable our customers to reach higher levels of connectivity, safety, and efficiency, continuously pushing for higher performance. It is a groundbreaking response to the challenges of our modern world, and we are proud to set an industry standard.”
Despite their collaboration on the joint venture, Volvo Group and Daimler Truck will remain competitors in all other business areas, maintaining their independent offerings of products and services, including digital solutions. The transaction to establish the joint venture is expected to be completed in the first half of 2025, pending regulatory approval.
