Auto manufacturers Volvo and Daimler agree on joint project to advance Self-Driving Vehicle (SDV) platform development

In a groundbreaking move, Volvo Group and Daimler Truck have announced a 50/50 joint venture to develop a software-defined vehicle platform for commercial vehicles. The collaboration, first announced in May, aims to redefine software architecture and pioneer a new era of self-optimizing trucks.

The joint venture, headquartered in Gothenburg, Sweden, will create a dedicated truck operating system and tools. This innovative platform is expected to offer brand- and versatile application-agnostic products to heavy-duty vehicle manufacturers, setting an industry standard.

The partnership will decouple software and hardware development cycles, enhancing customer efficiency and experience. One of the key features of the joint venture is the ability for customers to purchase "over-the-air" updates for digital applications, ensuring their vehicles remain technologically up-to-date.

The control units developed as part of the joint venture will be capable of handling large amounts of data. This capability is crucial for achieving unprecedented levels of safety, comfort, and efficiency for customers, as stated by Daimler Truck's CEO.

Volvo Group President and CEO Martin Lundstedt described the joint venture as a revolutionary response to the challenges of the modern world. He also emphasized that Volvo and Daimler will remain competitors in other business areas and will continue to offer independent products and services.

Meanwhile, Panasonic Automotive Systems has partnered with Arm to standardize interfaces for real-time operating systems in the development of Software-Defined Vehicles (SDVs). This partnership aims to decouple advanced driver assistance systems software from hardware dependencies, further enhancing the flexibility and adaptability of the joint venture's offerings.

Karin Rådström, CEO of Daimler Truck, stated that the joint venture demonstrates their commitment to lead the digital transformation of the industry. She also assured that the digital customer offerings of Volvo and Daimler will remain separate, unaffected by the joint venture.

The transaction for the new company is expected to be complete in the first half of 2025. With this joint venture, both Volvo Group and Daimler Truck are set to shape the future of commercial vehicle technology, paving the way for a safer, more efficient, and more connected transportation industry.