Daimler Truck Holding is in the process of seeking a financial partner for its self-driving technology subsidiary, Torc Robotics, aiming to secure additional funds to sustain the unit’s substantial investment requirements, Bloomberg reported, citing sources with knowledge of the situation.
The sources told the news agency that the German truck manufacturer has engaged Bank of America Corp to explore potential investors interested in purchasing a minority share in the self-driving unit.
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They said that the initiative is directed at procuring capital to underwrite the division’s estimated €600m ($660m) in yearly expenditures.
Torc Robotics, with its headquarters in Virginia, US, specialises in developing level 4 autonomous driving technologies, which are designed to manage the full spectrum of driving tasks in specific scenarios without human input. The company’s primary focus is on heavy-duty trucks.
Daimler Truck retains approximately 91% ownership of Torc, with the founders holding the residual interest.
Discussions regarding the partnership are said to be in preliminary stages, and the specifics, including the exact proportion of the stake to be sold, are yet to be determined.
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By GlobalDataChoosing not to provide additional comments, a Daimler Truck spokesperson stated, “In general, Daimler Truck is prepared to consider new investors if they can offer meaningful value to our autonomous driving initiatives and support the company’s growth.”
Bloomberg noted that Bank of America’s representative also declined to comment.
Daimler Truck acquired Torc in 2019 and has been a key component in Daimler’s strategy to bring autonomous freight transportation to market.
The company is currently conducting pilot programmes in the US and is expanding its engineering team in anticipation of a broader rollout.
In July, Daimler Truck announced a partnership with the Senegalese government and Global Truck Systems (GTS) to set up a truck assembly facility in Senegal by 2026. This agreement will involve Daimler Truck supplying vehicle component kits for local assembly.
Furthermore, in the following month, Daimler Truck, along with other truck manufacturers such as Volvo, Paccar, and International Motors, initiated legal action against the state of California.
The lawsuit aims to block the enforcement of stringent emissions standards that were previously invalidated by US President Donald Trump.
