The commercial vehicle manufacturers Daimler Truck and Volvo are planning a joint venture to develop a common software platform and operating system for heavy trucks.
The aim is to make the new company a leading developer of standardized hardware and software, the manufacturers jointly announced on Friday.
The chief executive of Germany's Daimler Truck, Martin Daum, said that the aim was to develop differentiating digital vehicle features for global customers significantly faster and more efficiently.
And the chief executive of Sweden's Volvo, Martin Lundstedt, added that they are now joining forces to offer customers the benefits that a software-defined vehicle platform for trucks will bring more quickly.
The new joint venture is to be based in the western Swedish city of Gothenburg.
Daimler Truck and Volvo emphasized that they will remain competitors in other business areas.
Both companies are already working together on fuel cells in the Cellcentric joint venture.
They plan to build a plant near the south-western German city of Stuttgart, where Daimler is headquartered, to develop alternative drive systems for heavy lorries.