Daimler Truck AG and the Volvo Group, have signed a tentative non-binding agreement to form a new joint venture, sharing the Green Deal vision of sustainable transportation and a carbon-neutral Europe by 2050.
The aim is to design, manufacture, and market fuel cell systems for heavy-duty vehicle applications and other applications. In the joint venture, Daimler will combine all of its existing fuel cell operations. On a cash and debt-free basis, the Volvo Group will purchase a 50% stake in the joint venture for approximately EUR 0.6 billion.
The joint venture will be 50/50 owned by the Volvo Group and Daimler Truck AG, and will act as a separate and autonomous company, with Daimler Truck AG and the Volvo Group remaining rivals in all other fields of operation. Combining forces would lower both companies’ production costs and hasten the market adoption of fuel cell systems in heavy-duty transport and challenging long-haul applications. In light of the ongoing economic crisis, collaboration has become even more important in order to achieve the Green Deal’s goals in a timely manner.
“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 AG
“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.
