Daimler Truck and the Volvo Group, have signed a non-binding agreement establishing a new joint venture.
The intention is to develop, produce, and commercialize fuel cell systems for heavy-duty vehicle applications and other use cases.
The Volvo Group will acquire 50% in the joint venture for approximately €600 million on a cash and debt-free basis.
“Transport and logistics keep the world moving, and the need for transport will continue to grow. Truly CO2-neutral transport can be accomplished through electric drive trains with energy coming either from batteries or by converting hydrogen on board into electricity. For trucks to cope with heavy loads and long distances, fuel cells are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades. This joint initiative with the Volvo Group is a milestone in bringing fuel cell powered trucks and buses onto our roads.”
Martin Daum, chairman of the board of management Daimler Truck and member of the board of management of Daimler.
“Electrification of road transport is a key element in delivering the so called Green Deal, a carbon neutral Europe and ultimately a carbon neutral world. Using hydrogen as a carrier of green electricity to power electric trucks in long-haul operations is one important part of the puzzle, and a complement to battery electric vehicles and renewable fuels. Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole. By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles. But for this vision to become reality, other companies and institutions also need to support and contribute to this development, not least in order to establish the fuel infrastructure needed.”
Martin Lundstedt, Volvo Group president and CEO.
The joint venture will operate as an independent and autonomous entity, with Daimler Truck and the Volvo Group continuing to be competitors in all other areas of business.
Joining forces will reduce development costs for both sides and accelerate the market introduction of fuel cell systems for heavy-duty transport and demanding long-haul applications.
Both companies have the common goal to offer heavy-duty vehicles with fuel cells for demanding long-haul applications in series production in the second half of the decade.
The signed preliminary agreement is non-binding. A final agreement is expected by Q3 and closing before the year-end 2020.
