Volvo and Daimler tie up to develop fuel cell for trucks

STOCKHOLM (Reuters) – Swedish truck maker Volvo (VOLVb.ST) said on Tuesday it had signed a deal with German rival Daimler (DAIGn.DE) to set up a joint venture to develop and produce fuel cell systems for heavy-duty vehicles.

Daimler will consolidate all its current fuel cell activities in the joint venture. Volvo said in a statement it will acquire 50% in the joint venture for the sum of approximately 600 million euros ($650.34 million) on a cash and debt free basis.

The deal was preliminary and non-binding it added.