GOTHENBURG, June 17 (Reuters) - European truckmaking

rivals AB Volvo and Daimler Truck hope to

cut costs and reduce reliance on suppliers by jointly developing

a software-defined vehicle program, they said on Tuesday.

Fleets and truck manufacturers, like automakers, have been

racing to produce technology-packed vehicles while also

grappling with the need to reduce costs.

Truckmakers are currently heavily reliant on suppliers

because their software is closely tied to hardware, but Daimler

and Volvo's new business - called Coretura - aims to develop a

software-defined vehicle platform and reduce that dependence.

The companies are looking to create an "industry standard",

Daimler Trucks CEO Karin Radstrom told reporters.

"We're looking at how we can move from our current reality

where we are very much dependent on our suppliers - which drives

both cost and sometimes timelines - and instead looking at

what's the next generation of software that we need to bring to

the vehicle", Radstrom said.

The Gothenburg-based venture will employ 50 employees to

start, with the hope of first deliveries of its connectivity

platform in 2027 and further deliveries towards the end of the

decade.

"Everything in the vehicle industry is very much oriented

around software and controlled by software", said Johan Lunden,

a Volvo veteran and the newly appointed CEO of Coretura.

Software will play an increasingly vital role in achieving

sustainability, productivity, and safety targets in the future,

he added.

While rivals, Volvo Group and Daimler have collaborated on

various businesses in recent years, such as within charging and

hydrogen fuel cell development.