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3. November 2020The Volvo Group and Daimler Truck AG have now signed a binding agreement to establish the joint venture. The goal is the series development, production, and marketing of fuel cell systems. The focus is on their use in heavy trucks, and the systems will also be offered for other applications.
(Stuttgart / Gothenburg) – The partners aim to establish the new joint venture as a leading global manufacturer of fuel cells and contribute to climate-neutral and sustainable transport by 2050. The Volvo Group will acquire 50 percent of the shares in Daimler Truck Fuel Cell GmbH & Co. KG for approximately €0.6 billion on a cash and debt-free basis. The completion of the transaction is expected in the first half of 2021. This is still subject to merger control by the relevant authorities and is contingent upon other approvals.
Hydrogen-based Fuel Cell as Key Technology
“For us at Daimler Truck AG and our future partner, the Volvo Group, the hydrogen-based fuel cell is a key technology for CO2-neutral transport in the future. We are both fully committed to the Paris Climate Agreement and thus to the decarbonization of road freight transport and other sectors. For this reason, we are equally dedicated to establishing a successful joint venture for the series production of fuel cell systems,” said Martin Daum, Chairman of the Board of Daimler Truck AG and Member of the Board of Daimler AG. The joint venture will benefit from the expertise and extensive experience gained over several decades of development work on fuel cells at Daimler.
Electrified and Hydrogen-based Future
“In the future, transport will be based on a combination of battery-electric and fuel cell-based electric vehicles, as well as to some extent other renewable fuels. Our planned fuel cell joint venture thus represents an important step towards a more livable world,” said Martin Lundstedt, President and CEO of the Volvo Group.
The Volvo Group and Daimler Truck AG have extensive and long-standing experience in developing new technologies and producing vehicles on an industrial scale. This will benefit the future joint venture from the outset – providing a unique starting position for a start-up company. From the beginning, the company will have in-depth knowledge of the modularity, efficiency, and reliability of fuel cell systems while also excelling in globally leading processes in areas such as quality, production technology, and industrial mass production.
Daimler Truck AG and the Volvo Group are successful global companies. The foundation for this is a deep understanding of their customers’ businesses and the associated commitment to providing them with maximum added value. The future joint venture aims to build on this and take on a comparable role regarding fuel cells.
Use of Alternative Drives in Heavy Trucks Very Challenging
For this type of fuel cell system, other application areas besides trucks are also suitable. The joint venture will develop a system with multiple power levels, including a dual system with 300 kW continuous power for heavy long-haul trucks. Since the use in heavy trucks is very challenging, the products of the joint venture are also well-suited for other applications such as stationary power generation.
Rolls-Royce plc and Daimler Truck AG have signed a letter of intent this year for a cooperation for CO2-neutral emergency power supply for critical facilities such as data centers with stationary fuel cell generators. These are intended to provide emission-free alternatives to diesel engines, which have so far been used as emergency power units. A cooperation agreement is to be drafted and signed by the end of the year.
Equal Shares in the Joint Venture
Daimler Truck AG and the Volvo Group will hold equal shares in the fuel cell joint venture. The companies will remain competitors in all other business areas such as vehicle technology or vehicle integration of fuel cells. In about three years, both companies plan to test fuel cell trucks in customer operations. They plan to start series production in the second half of the decade.
The completion of the transaction is expected in the first half of 2021. This is still subject to merger control by the relevant authorities and is contingent upon other approvals.
www.daimler.com www.volvotrucks.de
Image: © Daimler AG
