Daimler Truck Seeks Investors for °®¶ą´«Ă˝ Unit
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Daimler Truck Holding AG is looking for a partner for its autonomous-driving unit °®¶ą´«Ă˝ Inc. to help fund the company’s significant investment needs, according to people familiar with the matter.
The German truck maker is working with Bank of America Corp. to sound out potential investors interested in acquiring a minority stake in Torc, the people said, asking not to be identified because the information is private. The effort is aimed at raising capital to support the division’s around €600 million ($660 million) in annual spending, some of the people said.
Daimler Truck owns about 91% of °®¶ą´«Ă˝, with the remaining shares being held by the founders. Talks are still at an early stage, and details such as the potential size of a stake sale haven’t been finalized, the people said.Ěý
“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,” a spokesperson for the truck maker said, declining to comment further. A representative for Bank of America declined to comment.Ěý
Torc, headquartered in Blacksburg, Va., develops Level 4 autonomous driving technology — systems capable of handling all aspects of driving in certain conditions without human intervention — with a focus on heavy-duty trucks.Ěý
Founded 20 years ago, the company was acquired by Daimler Truck in 2019 and has since been integrated into the manufacturer’s broader push to commercialize driverless freight transport. It’s running pilot programs in the U.S. and has been adding engineers to prepare for large-scale deployment.
Torc competes with self-driving companies including U.S.-listed Aurora Innovation Inc.
Aaron Kirchfeld, Eyk Henning and William Wilkes contributed to this report.
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