Rivals Volvo Group and Daimler Truck have agreed to form a joint venture that will develop a software-defined vehicle platform to enhance their digital capabilities.

The 50/50 joint venture will be based in Sweden, according to a preliminary agreement expected to be finalized by early 2025.

The JV will develop a common software-defined vehicle platform and dedicated truck operating system. The companies say the goal is for the independent entity to be a leading developer of standardized hardware and software.

“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,” said Martin Lundstedt, Volvo Group president and CEO.

“Given the rapid transformation of our industry, it makes sense to collaborate to accelerate development, increase volumes and share cost. Software-defined heavy-duty trucks represent a paradigm shift in the transformation of our industry. Making the truck a programmable device with standardized hardware and operating system for fast product updates will give both companies the opportunity to create value for our customers and their customers though differentiating digital services and solutions. Partnership is truly the new leadership.”

Added Martin Daum, CEO of Daimler Truck: “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.”