Volvo, Daimler Truck Form Joint Venture to Develop Software-Defined Vehicle Technology

Volvo and Daimler Truck have announced plans to establish a joint venture focused on developing software-defined vehicle technology. This collaboration aims to reduce costs and decrease reliance on suppliers, who currently play a significant role in the integration of software and hardware in truck manufacturing.

The new joint venture, named Coretura, will be based in Gothenburg. Initially, it will employ 50 staff members. The connectivity platform developed by Coretura is expected to be delivered in the first batch by 2027, with further deliveries planned by the end of the century.

Karin Radstrom, CEO of Daimler Truck, highlighted the companies' goal to create industry standards. She stated that the current high dependence on suppliers drives up costs and sometimes affects project timelines. The shift towards developing next-generation software for vehicles is seen as a crucial step in addressing these issues.

Johan Lunden, a senior executive at Volvo and the newly appointed CEO of Coretura, emphasized the central role of software in the automotive industry. He noted that software will become increasingly important in achieving sustainability, productivity, and safety goals in the future.

Despite being competitors, Volvo Group and Daimler have collaborated in various business areas in recent years, including the development of charging and hydrogen fuel cell technologies. This joint venture represents another step in their strategic partnership, aimed at leveraging shared resources and expertise to drive innovation in the trucking industry.

By establishing Coretura, Volvo and Daimler Truck are positioning themselves to lead the transition towards software-defined vehicles. This move not only addresses the immediate need to reduce costs and supplier dependency but also sets the stage for future advancements in vehicle technology. The collaboration underscores the importance of software in modern vehicle design and highlights the companies' commitment to staying at the forefront of technological innovation.