Daimler Truck AG and the Volvo Group have signed a preliminary non-binding agreement to establish a new joint venture to develop, produce and commercialize fuel cell systems for heavy-duty vehicle applications and other use cases.
Daimler will consolidate all its current fuel cell activities in the joint venture. The Volvo Group will acquire 50% in the joint venture for the sum of approximately EUR 0.6 billion on a cash and debt free basis.
“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,” noted Daimler. “This joint initiative with the Volvo Group is a milestone in bringing fuel cell powered trucks and buses onto our roads.”
“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,” said Martin Daum, chairman of the Board of Management of Daimler Truck AG.
“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,” said Martin Lundstedt, Volvo Group president and CEO. “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.”
The Volvo Group and Daimler Truck AG will be 50/50 partners in the joint venture, which will operate as an independent and autonomous entity, with Daimler Truck AG and the Volvo Group continuing to be competitors in all other areas of business.
The common goal is for both companies to offer heavy-duty vehicles with fuel cells for demanding long-haul applications in series production in the second half of the decade. In addition, other automotive and non-automotive use cases are also part of the new joint venture’s scope.
A final agreement is expected by Q3 and closing before year-end 2020.
