Daimler Truck, Volvo to Partner on Software-Based Production Platform — Update

By David Sachs

Daimler Truck and Volvo Group will form a joint venture to develop a software-based manufacturing platform to build digitized heavy-duty vehicles.

Daimler said Friday that each commercial-vehicle maker will own half of the new company, which will be based in Gothenburg, Sweden, and operate as an independent business. Both companies will use the platform to produce their own software-led trucks and buses, and the venture will also offer the service to other manufacturers, Daimler said.

Digital architecture is crucial for making vehicles that rely on software. The auto industry is transitioning to so-called software defined vehicles, which can be adapted to new technology and individual needs more easily than conventional cars, buses and trucks.

"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," Daimler Truck Group Chief Executive Martin Daum said.

The deal is nonbinding, with the transaction expected to close in the first quarter of 2025.

Daimler Truck and Volvo will remain competitors with distinct products, and will use the platform to create separate end-user applications, Daimler said.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

May 17, 2024 05:08 ET (09:08 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.