Volvo and Daimler Launch Joint Venture to Develop Software-Defined Trucks

To cut expenses and lessen their dependence on external suppliers, AB Volvo and Daimler Truck have introduced a collaborative technology venture. The collaboration, unveiled on June 17, 2025, centers on the development of a software-defined vehicle platform that both companies believe will become an industry standard.

The newly formed venture, named Coretura, will be based in Gothenburg, Sweden, and is initially set to employ around 50 people. The first rollout of the platform is scheduled for 2027, with additional deployments anticipated toward the end of the decade. Executives from both Volvo and Daimler emphasized the growing importance of software in vehicle design and operation, particularly as the industry faces mounting pressures to integrate advanced technology while managing costs.

Daimler Truck CEO Karin Rådström noted that the project is a response to the current over-reliance on suppliers whose hardware-tied software drives up production costs and delays. “We’re looking at how we can move from our current reality where we are very much dependent on our suppliers—which drives both cost and sometimes timelines—and instead looking at what’s the next generation of software that we need to bring to the vehicle,” Rådström told reporters (Reuters, 2025).

Coretura's mission aligns with broader trends across the automotive and trucking sectors, where software increasingly underpins vehicle systems and connectivity. According to Johan Lundén, a Volvo veteran who will lead Coretura as CEO, software will play a central role in achieving long-term sustainability, safety, and productivity goals.

Though AB Volvo and Daimler Truck remain competitors in the commercial vehicle market, the two companies have a history of strategic cooperation. Past collaborations include joint efforts in hydrogen fuel cell technology and electric vehicle charging infrastructure.