"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," Daimler and Volvo said
April 21, 2020. By News Bureau
Daimler and Volvo Trucks have announced that they decided to join forces to develop, produce and sell fuel cell systems for heavy-duty vehicles, in a sign that the coronavirus crisis is fast-tracking consolidation.
Global car and truck makers are discovering ways to share costs on new technologies as customers shun showrooms in areas hit by the coronavirus pandemic lockdowns, damaging profits.
"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," Daimler and Volvo said.
The joint venture agreed by the two companies will function as an independent and autonomous entity, with Daimler Truck AG and the Volvo Group enduring to be competitors in all other areas of business, they said in a joint declaration.
"Joining forces will decrease development costs for both companies and accelerate the market introduction of fuel cell systems in products used for heavy-duty transport and demanding long-haul applications," the companies said.
Volvo will obtain 50% in the joint venture for around 0.6 billion euros, they added.
Daimler Trucks will bring together all of Daimler's fuel cell activities in a new fuel cell unit, including those of Mercedes-Benz Fuel Cell GmbH. Automotive and non-automotive usage are also part of the new joint venture's scope.
The initial agreement between the two companies is non-binding, with a final deal projected by the third quarter and closing before the end of 2020, the companies said.
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