Scaling Grid Innovation: Volvo Penta Follow-On Invests in US-based Developers of Battery Storage Solutions

Volvo PENTA develops products in PTC environments on the PLM side with above all WINDCHILL and in the CAD area with CREO. Interesting things are happening within the Volvo Group's well-known marine engine developer Volvo Penta. The era of focusing on just marine engines is fading and being replaced by a much broader business. During the past week, the company revealed that it had made a follow-on investment in the US and Ireland-based company UtilityInnovation Group (UIG). The company specializes in resilient, innovative utility systems and decentralized energy solutions.
Volvo Penta's President, Anna Müller, says that it is a strategic investment that marks the company's continued commitment to driving the energy transition.
"This follow-on investment in UtilityInnovation Group reflects our commitment to advancing reliable and efficient electrified power solutions as part of our broader net zero ambitions," she says, adding that it also underlines Volvo Penta's role as an independent supplier of energy-dense battery energy storage subsystems (BESS) in the growing global energy infrastructure market.
For Penta's part, it can be stated that this investment is an addition to the one initially made in UIG 2023. The partnership established in this thus seems to have worked well and with the additional investment will now further scale up Penta's expertise when it comes to meeting the accelerating demand on more dynamic, sustainable electricity network infrastructure.
In terms of background, the Volvo Penta chief points to the exponential demand for data center power and the complexity of grid evolution, which she believes, "can be met by UIG's competence and ability to integrate Volvo Penta's energy-dense and robust BESS (Battery Energy Storage Solutions) subsystems." Together, Volvo Penta and UIG aim to expand the scope of robust energy solutions. By combining the Volvo Group's technology and global footprint with UIG's deep integration expertise, the continued partnership will enable the delivery of major innovative energy solutions for a range of global customers, including power plants, data centers and generally also large users of energy.
A heavy point is thus support for the introduction of advanced battery energy storage solutions. "The investment will support the development and commercialization of UIG's cutting-edge Energy Storage for Resiliency (ESR) platform," notes Volvo Penta in the press release. ESR is intended to enhance power stability, alleviate the load challenges that come with energy-intense AI or ML (machine learning) data centers, and optimize large microgrids.
As for the software development environment, Volvo Penta, just like the others in the Volvo Group, works with PTC solutions - Windchill as PLM/PDM backbone and CREO as CAD software. They are also working on implementing a digital thread solution, including PTC's ThingWorx and Arbortext solutions.
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BUSINESS SYSTEMS: IFS Receives Analyst Praise for its Cloud Platform and All-In Commitment to...

“AIM SET to become THE UNDISPUTED CATEGORY LEADER in industrial software and AI.” The PLM analyst CIMdata has in a so-called "commentary" taken a closer look at business IT developer IFS in connection with the company's recently held large user event IFS Unleashed in Orlando, USA. Aside from the analyst's coverage of the market leader on the ERP and business systems side, SAP, ERP developers are usually not the focus of CIMdata's reviews. But IFS stands out in the context, above all for its stronger connections to the manufacturing and also PLM page than most of its competitors, which is good reason for the leading American PLM analyst to comment on what IFS is developing. A backdrop is that IFS has made a challenging cloud and AI journey that quickly made this global player a leading developer in these areas.
At IFS’ Unleashed event, the Swedish business system developer's globally strong both technological and commercial position was also manifested with a live participation of roughly 3,000 of IFS system users. What above all stand out, CIMdata writes, is the IFS cloud platform, which drives "an organic cloud-based SaaS growth, supplemented by strategic acquisitions." Moreover, they note that IFS industry solutions, "make use of deep expertise that has been gained from customers over the years. Their financial success is clear and helps support investments towards their grand vision: to become the undisputed category leader in industrial software,” writes CIMdata, who are impressed by IFS’ “all-in” on generative AI (genAI), a key to industrial AI and category leadership.
The analyst's conclusion is that IFS Unleashed 2024 shows that the company's system developers have done their homework and achieved significant progress. The IFS roadmap also wins the analyst's approval: "The roadmap and resources speak for continued market success."
A closer look at IFS' figures also looks good: The company has grown significantly – both organically and through acquisitions – over the past decade, not least in 2023 when growth was 30%. Above all, the investments look good partly through IFS Cloud platform, and partly through the genAI pieces, with IFS.ai services available over basically the entire IFS Cloud offer and over the specific six industry solutions that characterize the company's customer target groups: aerospace & defense, energy, construction, manufacturing, services and telecom. In this, over 300 AI use cases are under development, with 60 use cases delivered by 2024.
IFS' business upward trend was also confirmed by the newly appointed CEO in January, Mark Moffat, who in his keynote said, among other things, that 30% of the company's 7,000 employees work in R&D, a doubling in the past five years. He also said that IFS has over 400 partners in its ecosystem and that the company has so far completed over 1,000 “Digital Business Value Assessments” – a proprietary methodology to support business transformation using IFS offerings. The outcome of these is interesting: The customers can reach a potential annual benefit worth 16 billion dollars and for IFS a potential revenue worth 3 billion.
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AFFÄRSSYSTEM: IFS får analytiker-beröm för molnplattformen och all-in-satsningen på generativ AI

”SIKTET INSTÄLLT på att bli DEN OBESTRIDDA KATEGORILEDAREN inom industriell mjukvara och AI.” PLM-analytikern CIMdata har i en s k ”kommentar” tagit en närmare titt på svenska IFS i samband med bolagets nyligen avhållna stora användarevent IFS Unleashed i Orlando, USA. Om man bortser från analytikerns bevakning av marknadsledaren på ERP- och affärssystemsidan, SAP – så hamnar vanligtvis inte ERP-utvecklarna i fokus för CIMdatas granskningar. Men IFS står ut i sammanhanget, framför allt för sina starkare kopplingar till tillverknings- och även PLM-området än de flesta av konkurrenterna, vilket är goda motiv för den ledande amerikanska PLM-analytikern att kommentera vad IFS utvecklar. Till saken hör f ö också att IFS gjort en utmanande moln- och AI-resa som snabbt tagit upp IFS till en ledande utvecklare jämfört med ERP-, EAM- och FSM-konkurrenterna.
På eventet IFS Unleashed manifesterades också den svenska affärssystem-utvecklarens globalt starka både teknologiska och kommersiella position med ett live-deltagande av drygt 3 000 av IFS systemanvändare. Vad som framför allt drar, menar CIMdata i sin kommentar, är IFS moln-plattform, som driver ”en organisk molnbaserad SaaS-tillväxt, kompletterat med strategiska förvärv.” Man menar vidare att IFS branschlösningar, ”utnyttjar djup sakkunskap som har vunnits hos kunder under åren. Deras ekonomiska framgång är tydlig och hjälper till att stödja investeringar mot deras stora vision: att bli den obestridda kategoriledaren inom industriell mjukvara,” skriver CIMdata, som är imponerade av IFS ”all-in” på generativ AI (genAI), en nyckel till industriell AI och kategoriledarskap.
Analytikerns konklusion är att IFS Unleashed 2024 visar att bolagets systemutvecklare gjort hemläxan och nått betydande framsteg. Även IFS roadmap vinner analytikerns gillande: ”Färdplanen och resurserna talar för en fortsatt marknadsframgång.”
Tittar man närmare på IFS siffror ser det också bra ut: Företaget har vuxit avsevärt – både organiskt och genom förvärv – under det senaste decenniet, inte minst under 2023 då tillväxten var 30 %. Framför allt ser satsningarna bra ut dels genom IFS Cloud, molnplattformen, och dels genAI-bitarna, med IFS.ai-tjänster tillgängliga över i stort sett hela IFs Cloud-erbjudandet och över de specifika sex branschlösningar som karaktäriserar bolagets kundmålgrupper: aerospace & defense, energy, construction, manufacturing, services och telecom. I detta är över 300 AI-användningsfall under utveckling, med 60 användningsfall som levererats under 2024.
IFS affärsmässiga uppåttrend bekräftades också av den i januari nytillträdde CEO, Mark Moffat, som i sin keynote bla berättade att 30 % av bolagets 7 000 anställda verkar inom FoU, en fördubbling under de senaste fem åren. Han sa också att IFS har över 400 partners i sitt ekosystem och att bolaget hittills har genomfört över 1 000 ”Digital Business Value-bedömningar” – en egenutvecklad metodik för att stödja affärstransformation med hjälp av IFS-erbjudanden. Utfallet av dessa är intressant: Kunderna kan nå en potentiell årlig nytta värd 16 miljarder dollar och för IFS en potentiell intäkt värd 3 miljarder.
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Did Siemens Pay Too Much for Altair Engineering?

"Ask BARCELONA if it was too expensive to sign up MESSI to the team." The analyst CIMdata has looked at and commented on Siemens Digital Industries' big deal last week: The purchase of American AI, HPC (High Performance Computing), simulation and analysis specialist Altair for $10.6 billion. A purchase that will move Siemens up to become the market's second in the CAE area with revenues around $1.5 B. The German PLM giant thus overtakes both MathWorks and Dassault when it comes to generating CAE revenue. Synopsys-owned Ansys continues to top the list.
CIMdata notes in its commentary that Siemens already has a significant digital portfolio in its PLM division, Digital Industries Software, but that the purchase of Altair Engineering further expands the portfolio with HPC, data analytics and key simulation technologies such as CAD-neutral modeling and meshing tools, implicit and explicit dynamics solvers, electromagnetics solvers, and topology optimization, all integrated with state-of-the-art AI/ML capabilities.
Interesting is also that the revenues that Altair brings also push Siemens up towards the level of $8 B in total for the PLM division. This, in turn, means that it sails up as the overall market leader in terms of PLM-related revenue ahead of Dassault, which in 2023 had $6.46 billion in total.
CIMdata further points out in its analysis that the combined Siemens and Altair S&A portfolio will establish a technically close to complete coverage, including the main domains of multiphysics simulation, HPC and AI-driven simulation technology: "When Siemens integrates with Altair and other Siemens Digital Industries Software offerings such as Simcenter , Teamcenter, NX, Polarion and EDA pieces, Siemens will have one of the most comprehensive portfolios of digital engineering solutions spanning the entire product lifecycle,” writes CIMdata.
Is the purchase too expensive? The question has been circulating for the past few days. There are, of course, several aspects to this, and yes, it was expensive in absolute terms. However, many argue that the technological value that Altair brings can make up for a lot of the $10.6 B price tag. Other bits are that during the last 5-6 year period, Altair developed a growth momentum, based on strategic acquisitions and a heavy internal innovative development culture, which among other things brought with it comprehensive updates and modernizations of interfaces, functionalities and integrations. At the same time, CIMdata believes that the S&A area has continued high growth potential. The analyst calculates with double-digit annual growth over the next five years. If Siemens succeeds in discounting this to expansive sales, the purchase will be a hit, just as the Mentor acquisition has been.
Generally, it's as CEO of Siemens' PLM division, Tony Hemmelgarn, says to PLM&ERP News: "It’s expensive, but then that’s what it takes to play in the software M&A world these days."
He nails the point spot on: maintaining world class takes its toll. Ask Barcelona, for example, why they paid huge money to bring Messi into the team...
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KRÖNIKA: Betalade Siemens för mycket för Altair Engineering?

”Fråga BARCELONA om det var för dyrt att värva MESSI till laget.” Nu har även analytikern CIMdata tittat på och kommenterat Siemens Digital Industries stora affär i förra veckan: Köpet av amerikanska AI, HPC (High Performance Computing), simulerings- och analys-specialisten Altair för 10,6 miljarder dollar. Ett köp som, om det går igenom de sedvanliga prövningarna, kommer att flytta upp Siemens till att bli marknadstvåa på CAE-området med intäkter runt 1,5 miljarder dollar. Den tyska PLM-giganten går därmed förbi både MathWorks och Dassault när det gäller att generera CAE-intäkter. Detta emedan marknadsettan, Synopsys-ägda Ansys, fortsatt toppar listan.
CIMdata noterar i sin kommentar att Siemens redan har en betydande digital portfölj i sin PLM-division, Digital Industries Software, men att köpet av Altair Engineering utökar portföljen ytterligare med HPC, dataanalys och nycklar inom simuleringstekniker som CAD-neutrala modellerings- och meshingverktyg, implicita och explicita dynamiklösare, elektromagnetik lösare och topologioptimering, allt integrerat med toppmoderna AI/maskininlärningsfunktioner (ML).
Som vi på PLM&ERP News konstaterade i vår kommentar knuffar även de intäkter som Altair för med sig också upp bolaget mot nivån 8 miljarder dollar totalt för PLM-divisionen (mer än 80 miljarder SEK). Detta i sin tur innebär att man seglar upp som marknadsetta totalt när det gäller PLM-relaterade intäkter före Dassault, som 2023 hade 6,46 miljarder dollar in totalt.
CIMdata pekar vidare i sin analys på att den kombinerade Siemens och Altair S&A-portföljen blir tekniskt sett nära nog heltäckande, inkluderat även huvuddomänerna för multifysiksimulering, HPC och AI-driven simuleringsteknik: ”När Altair integreras med Siemens Digital Industries Software-erbjudanden som Simcenter, Teamcenter, NX, Polarion och EDA-bitarna kommer Siemens att ha en av de mest omfattande portföljerna för digitala tekniska lösningar som sträcker sig över hela produktens livscykel, från idé, design, simulering, testning, validering, produktion, drift, till återvinning, återanvändning och återvinning,” skriver CIMdata.
Är köpet för dyrt? Frågan har cirkulerat de senaste dagarna. Det finns förstås flera aspekter på detta, och ja, det blev dyrt i absoluta tal. Däremot talar en hel del för att det teknologiska värde som Altair för med sig kan kompensera en hel del för priset $10.6B. Andra bitar är att Altair under den senaste 5-6 årsperioden utvecklat dels ett tillväxt-momentum, baserat på strategiska förvärv och en tung intern innovativ utvecklingskultur, som bl a fört med sig genomgripande uppdateringar och moderniseringar av gränssnitt, funktionaliteter och integrationer. Parallellt menar CIMdata att S&A-området har en fortsatt hög tillväxtpotential. Analytikern kalkylerar med en tvåsiffrig årlig tillväxt under de kommande fem åren. Om Siemens lyckas diskontera detta till expansiv försäljning blir köpet en fullträff, precis som Mentor-förvärvet blivit det.
Samtidigt är det lite som CEO för Siemens PLM-division, Tony Hemmelgarn, säger till PLM&ERP News: "Visst, det är dyrt, men det är vad som krävs för att spela i M&A-världen nu för tiden."
Han fångar saken exakt: att hålla världsklass kräver sin tribut. Fråga t ex Barcelona varför man betalade enorma pengar för att få med Messi i laget…
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Cognizant och AWS i samarbete kring AI och digitala fabriker

Det stora konsultföretaget Cognizant har signerat ett intressant strategiskt samarbetsavtal med Amazon Web Services (AWS). Avtalet omfattar avancerade teknologilösningar och molntjänster som ska förbättra kundernas satsningar på smart tillverkning. Industriellt tar de nykomponerade erbjudande sikte på AI för företag inom industri-, fordons-, biovetenskaps- och konsumentvaruindustrin
Denna senaste expansion av Cognizants samarbete med AWS riktar sig framförallt till marknaden för Internet of Things (IoT), data, artificiell intelligens (AI) och molnsatsningar i Industry 4.0-applikationer. Det handlar exempelvis om digitala tvillingar, simuleringar, exekveringssystem, cybersäkerhetslösningar för edge computing och operational technology (OT). ”Morgondagens vinnare anammar smarta tillverkningsmetoder i sin produktionsverksamhet,” säger Anna Elango, EVP och chef för Cognizants Core Teknik and Insights. Han tillägger: ”Vår expertis inom IoT, AI och industriell automation gör det möjligt att leverera innovativa lösningar som driver kvalitet, effektivitet, produktivitet, minskade kostnader och förbättrad flexibilitet i anläggningen.”
Cognizant kommer att arbeta med kunder för att ge råd, implementera, distribuera och hantera smarta tillverkningslösningar byggda på AWS. Därigenom får kunder realtidsinsyn i produktionsverksamheten, möjlighet att arbeta med prediktivt underhåll och förbättrat datadrivet beslutsfattande, som baseras på generativ AI.
I bakgrundsmaterialet noterar chefen för Automotive and Manufacturing på AWS, Ozgur Tohumcu, att företag har ofta fått brottas med en brist på standardiserade tekniska protokoll, höga initiala kostnader, komplex teknik och begränsad tillgänglighet i sina satsningar på smart tillverkning:
”Med Cognizants plattforms- och branschexpertis och utnyttjande av AWS avancerade IoT- och AI-tjänster, kommer tillverkare att få tillgång till högkvalitativ support och vägledning för att införa smarta tillverkningsmetoder, tillägger han.
Vad kan generativ AI göra för att stödja dessa utmaningar. Det enkla svaret är att genom att utnyttja kraften i gen AI kan tillverkare analysera stora volymer av olika data i realtid för att få kontextuella insikter. Annat handlar om möjligheter att utvärdera konstruktioner snabbt och på så sätt förbättra effektiviteten och produktiviteten och sänka kostnaderna i försörjningskedjan. Den kan också fungera som en slags co-pilot för drift- och kundtjänstorganisationer – återigen, öka produktiviteten samtidigt som kostnaden för fel minskar.
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BREAKING NEWS: Därför köper Siemens simulerings- och analysföretaget Altair Engineering för 113 miljarder kronor

Siemens köper de senaste årens starkt växande mjukvaruutvecklare inom AI, HPC och simulering- och analys, amerikanska Altair Engineering. ”Förvärvet kommer att skapa världens mest kompletta AI-drivna design- och simuleringsportfölj – genom att kombinera Altairs kapacitet inom simulering, högpresterande beräkningar, datavetenskap och artificiell intelligens med kraften hos Siemens Xcelerator,” säger Roland Busch, President and CEO of Siemens AG. Köpeskilling: 10.6 miljarder dollar, motsvarande ca 113 miljarder svenska kronor.
Genom det nu annonserade köpet bildas nu världens näst största spelare inom CAE-området. I kommersiella termer går Siemens genom dagens köp från fjärdeplatsen bland världens toppspelare till andra platsen efter Ansys, för övrigt nyligen uppköpta av elektronikutvecklaren Synopsys. Man passerar därmed kommersiellt både MathWorks och Dassault Systemes.
Det händer alltså stora saker inom PLM när de stora spelarna nu formerar sig inför slaget om framtiden. En framtid som inte bara handlar om exponentiellt växande inslag i dagens produkter av AI, mjukvaror, elektronik, och el, utan också om en veritabel nyckelteknologi som berör det mesta inom digital produktutveckling byggd på virtuella prototyper och 3D-modeller: Simulering & Analys (S&A).
När den nya tidens produkter ska tas fram existerar de inte som fysiska produkter eller prototyper – de är numera i stor omfattning digitalt utvecklade virtuella produkter som i sina inledande utvecklingsfaser existerar enbart som ettor, nollor och egentligen bara som ”teoretiska” digitala modeller i datorer. Men hur kan man säkerställa sånt som funktionaliteter, optimerade materialval, durabilitet, vätskedynamik, prestanda-verifiering, valideringar, integrerade kretsars kapacitet, värmeutveckling, tillverkningsbarhet och annat? Här ger simulerings- och analysverktygen de svar man behöver. Och i detta har Siemens utvecklats enormt mycket genom köp av lösningar och företag som CD-adapco (StarCCM+ var flaggskepet), LMS International (med bl a Amesim-lösningen), Mentor Graphics (specialist med lösningar inom t ex Integrerade Kretsar), m fl. Men också genom strategiska satsningar på att utveckla det man köpt till en av marknadens vassaste CAE-plattformar, Simcenter, också är en del av PLM-portföljen Xcelerator. Dock går dagens annonserade köp, som det f ö ryktats om under någon vecka, utanpå det mesta.
Vad är det man köper? Framför allt en imponerande samling digitala simulerings- och analysverktyg. När det gäller industrisegment har Altair en stark närvaro inom fordons- och transportindustrin, men under de senaste åren, främst genom förvärv, har det expanderat till andra segment, som högteknologisk elektronik, flyg och försvar, medicinsk utrustning och energi. I detta har man gått från att vara en nischleverantör till ett globalt tekniskt företag i företagsklass. Från sina rötter i strukturanalysmjukvara som Hypermesh har Altair nu mjukvara och molnlösningar med välkända varumärken som HyperWorks, solidThinking, Inspire, Altair PBS och SmartWorks, bland annat, inom områdena simuleringsdriven produktutveckling, högpresterande beräkningar (HPC) och dataintelligens.
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BREAKING NEWS: Siemens Aquires Simulation and Analysis Company Altair For $10.6B

FORMING A NEW ERA and THE SECOND LARGEST CAE-PLAYER IN THE WORLD. Siemens buys the strongly growing software developer in AI, HPC, Simulation & Analysis, Altair Engineering. "The acquisition will create the world's most complete AI-driven design and simulation portfolio - by combining Altair's capabilities in simulation, HPC, data science and AI with the power of Siemens Xcelerator," said Roland Busch, CEO of Siemens AG. Siemens is paying $10.6 billion for Altair.
Through the now announced purchase the world's second largest player in the CAE area is formed. In commercial terms Siemens moves from 4th place among the world's top CAE revenue generators to second place after Ansys. Siemens thus pass both MathWorks and Dassault with totally more than $1.5 billion in annual CAE revenue. Moreover, it will push the PLM divison's total annual revenues up to the €8B level.
So, big things are happening within PLM when the big players are now charging up for the battle for the future. A future that is not only about exponentially growing features of AI, software, electronics, and electricity in today's products, but also about a key technology affecting most of digital product development built on 3D models: Simulation & Analysis (S&A).
When the products of the new era are developed, they do not exist as physical products - but are nowadays virtual (3D) models which in their initial phases exist only in binary numbers, zeros and ones, and really only as "theoretical" digital entities. So how do you ensure functionalities, optimized material choices, durable structures, thermal reactions, fluid dynamics, performance verification, validations, correct IC capabilities, manufacturability and more? S&A tools provide the answers. And in this, Siemens has developed strongly through the purchase of solutions and companies such as CD-adapco (flagship StarCCM+), LMS International (Amesim among others), Mentor Graphics (Integrated Circuits, etc), and more. But also, through strategic investments in developing what was bought into one of the market's broadest CAE platforms, Simcenter, also a part of the Xcelerator portfolio. However, today's deal, which has been rumored for a week or so, goes beyond most of it.
What are they buying? In terms of industry segments, Altair has a strong presence in automotive and transportation, but in recent years, mainly through acquisitions, it has expanded into other segments, such as high-tech electronics, aerospace & defense, medical equipment, and energy. In this, it has gone from being a niche supplier to a global enterprise-class technology company. From its roots in structural analysis software such as Hypermesh, Altair now has software and cloud solutions with well-known brands such as HyperWorks, solidThinking, Inspire, Altair PBS and SmartWorks, among others, in the areas of simulation-driven product development, high-performance computing (HPC) and data intelligence.
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”An Industrial Drama,” Says Siemens Head of PLM, Tony Hemmelgarn, About Electrification and SDV...

How do the major PLM developers generally view PLM's role in SDV (Software-Defined Vehicles) development and the forward storming electrification technologies as a growing parts of vehicle and transport product realization? The question is brought up to date not least by the announcement this week from the Volvo Group and Daimler Trucks to invest in a 50/50-owned company for the development of an SDV platform for trucks. In two earlier published articles, PLM&ERP News has taken a closer look at this through interviews with leaders of major players in the automotive industry. Siemens Digital Industries Software’s CEO, Tony Hemmelgarn, is one of the PLM profiles interviewed. He is today the longest-serving executive in the entire PLM space. Meet him in my in-depth interview around these two superhot topics.
The claim that the car industry is going through a unique technologically explosive phase right now is no exaggeration, he notes. As AI, electrification, electronics and software—as some of the most prominent new technologies—pave the way and dramatically change product development, timing is everything, for everyone. The right tool at the right time is of the utmost importance. This not only affects PLM developers, such as the leading player in the automotive market, Siemens Digital Industries Software, but also fundamentally changes the situation of car manufacturers. Today’s cars are more connected, software-controlled, autonomous and electric than ever. Each of the vehicles contains, or will soon contain, millions of lines of code and must daily be able to handle terabytes of data. This is a huge undertaking and it has led to a ”volcanic” change in the way several major vehicle manufacturers work, not least to now quickly build up sophisticated infrastructures for software development. ”What the automotive industry is going through is actually nothing less than an industrial drama,” says Tony Hemmelgarn. ”We are talking about survival of the fittest. The fight is fierce and there are three areas that stand out: Software/electronics, digital manufacturing processes and in a 5-10 year perspective the full impact of artificial intelligence.”
In this interview he also comments the problems that the automotive industry is facing in terms of declining share of sales for electric vehicles.
”New technologies are breaking new ground, often resulting in high growth numbers from initially low volumes. But newly established manufacturing methods, high battery costs, decreasing subsidies and a sluggish growth rate in terms of charging stations can, in parallel with a generally declining economy, can backfire in the form of declining sales. We’re talking about a complex chain of events here that not always move in pace. But over time, the assessment is that electric cars are so important to the sustainability and environmental health of the planet, that today’s declining numbers probably represent more of an unexpected notch in the upward curve than a long term decline.”
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SDVs: Volvo Group and Daimler Truck in Binding Agreement for Development of Platform for...

HQ in GOTHENBURG – WHICH SYSTEM WILL BE USED IN THE DEVELOPMENT WORK? Today's big news in automotive is Volvo Group's and Daimler Trucks' decision to proceed with a binding agreement on the development of a platform for software-defined vehicles - so-called SDVs, "Software Defined Vehicles" - for heavy trucks. The agreement is based on a 50/50 deal and follows an earlier announcement from the companies, from May 2024.
Particularly interesting for Sweden is that this SDV platform aims to set an industry standard and that the plan includes a head office in Gothenburg. In the joint press material, the companies note that the partners' joint goal is to, “develop a truck operating system and to offer the joint venture's brand and versatile application-agnostic products to other commercial vehicle OEMs.” But despite this, competition between the companies must be protected and maintained: "Volvo Group and Daimler Truck will remain competitors in all other business areas and will continue to focus on an independent product and service offering," it writes.
Today's announcement will undoubtedly strengthen the digital transformation not only within Volvo and Daimler, but also within the transport industry. Not least influenced by the fact that we are talking about the heavy truck industry's two largest manufacturers.
An SDV is a vehicle where core functions are handled by a software layer that sits between the driver's or "fleet manager's" vehicle interface and which handles vehicle functions primarily via sensors. This allows the manufacturer to improve both usability and features dynamically via updates, including wireless.
This is a very interesting venture, not least because software-defined vehicles are the next major line of development in the automotive industry. But also because it is the second example within the framework of a couple of years where Volvo and Daimler join forces in an important development area. Previously, since 2020, Volvo and Daimler Truck have a joint venture underway around fuel cell solutions to power the vehicles. Then the Volvo Group bought 50 percent of Daimler Truck Fuel Cell GmbH & Co for a joint development of energy solutions for heavy trucks whose electricity for the batteries is generated from fuel cells powered by hydrogen gas. With the now announced SDV investment, the companies move forward together and share the significant development costs. Undeniably a smart move.
But there are challenges: for example, which systems should be used in the development work? The PLM side is one thing, while software development can land elsewhere. Anyway: Volvo Group has on the PLM side PTC with Windchill as cPDm solution. On the ALM side, PTC's Codebeamer, together with Windchill, will play important roles in PTC's offering. This while Daimler basically works in Siemens environments with Teamcenter and NX CAD. As far as the software side is concerned, Mercedes has used, among other things, IBM Doors. Siemens' ALM solution is called Polarion, which presumably has good hopes of getting into Daimler. The development will be interesting to follow.
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