Volvo, Daimler Truck to form software-defined vehicle platform joint venture

Volvo Group (VLVLY) and Daimler Truck (DTRUY) have reached a preliminary agreement to establish a joint venture to develop a common software-defined vehicle platform and dedicated truck operating system, providing the basis for future software-defined commercial vehicles. The intention is to make the new joint venture a leading developer of standardized hardware and software. This technical basis will then enable Volvo Group and Daimler Truck and potentially other partners to provide differentiating digital vehicle features for its products. Volvo Group and Daimler Truck intend to be 50/50 partners in the joint venture, which will operate as an independent entity, with Volvo Group and Daimler Truck continuing to be competitors in all other areas of business. Both companies will provide their own end-user applications on top of the platform to offer differentiating digital vehicle features to their respective customers. The now signed preliminary agreement is non-binding. A final agreement is expected within this year, with the goal to close the final transaction in Q1 2025, subject to necessary examination and approvals by the respective authorities.