Daimler and Volvo to form fuel-cell joint venture
Manufacturers plan to jointly develop and produce fuel cell systems
Daimler Truck AG and the Volvo Group have signed a preliminary non-binding agreement to establish a new joint venture.
The intention of the venture is to jointly develop, produce and commercialise hydrogen-electric 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 €0.6bn on a cash and debt free basis.
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.
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. Daimler Truck AG and the Volvo Group continuing to be competitors in all other areas of business. Joining forces is expected to 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 signed preliminary agreement is non-binding. A final agreement is expected by the third quarter and closing before year-end 2020. All potential transactions are subject to examination and approval by the responsible competition authorities.