A 50% stake in the joint venture will be acquired by Volvo Group for the sum of approximately €600m
Daimler AG central headquarters in Daimler complex in Stuttgart. (Credit: Wikipedia/Enslin)
Swedish manufacturing company, Volvo Group has signed a preliminary agreement with Daimler Truck to establish a joint venture to make hydrogen fuel-cell for sustainable transportation.
The collaboration aims to develop, produce and commercialise the fuel cell systems for heavy-duty vehicle applications as well as other use cases.
Daimler is expected to consolidate all its current fuel cell activities in the joint venture.
Volvo Group president and CEO Martin Lundstedt said: “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.”
Volvo Group to acquire 50% stake in the fuel cell joint venture
A 50% stake in the joint venture will be acquired by Volvo Group for the sum of approximately €600m on a cash and debt free basis.
The collaboration is expected to reduce the development costs for both the companies and accelerate the market introduction of fuel cell systems in products that are used for heavy-duty transport and demanding long-haul applications
Daimler Trucks is combining all group-wide fuel cell activities in a new Daimler Truck fuel cell unit to enable the joint venture.
The Swedish manufacturer said that the joint venture will include the operations in Nabern/Germany, which is currently the headquarters of the Mercedes-Benz Fuel Cell, with production facilities in Germany and Canada.
The final agreement is estimated to be completed by the third quarter of the year, while the closing is expected before the year-end.