Zonar Systems will continue to operate independently following this morning’s news that Daimler Trucks North America is now a minority investor in the vehicle telematics and electronic fleet inspection provider, cementing a partnership between the two companies and potentially ushering in a new era of vehicle connectivity for school buses.
Financial terms were not disclosed. More importantly, Martin Daum, president and CEO at DTNA, received a seat on Zonar’s Board of Directors, which the spokesman added enables DTNA to be in on ground floor strategy and discussions about R&D and new business opportunities.
DTNA and Zonar jointly said they will also continue to co-develop new “embedded” fleet technology products, enabling Zonar to expand its offerings at both the OEM and aftermarket levels, which include electronic vehicle inspection reporting, GPS tracking, Hours of Service logging and driver behavior coaching.
“This is a relationship in which the whole is greater than the sum of its parts,” said Zonar CEO Brett Brinton. “The drivers and fleet managers will all benefit from combining the big data analytics and rapid technology development Zonar offers with the depth of knowledge, precision and expertise in vehicle engineering DTNA brings.”
The deal “cements” an ongoing partnership between the two companies. Five years ago, the companies launched Virtual Technician, a remote diagnostic system that is factory-installed in Thomas Built Buses, Freightliner Trucks and Western Star Trucks. Then, last spring, DTNA announced that Zonar’s telematics solution would be factory-installed in the company’s Thomas Built Buses Saf-T-Liner C2 product, starting with the 2016 model year that went into production last summer.
Zonar also developed and provides the power to Detroit Connect, DTNA’s complete telematics solution that is used in more than 150,000 vehicles.
“The strategic partnership provides DTNA the ability to leverage the agile development and rapid innovation cycles for which Zonar is known. Zonar’s solutions, combined with DTNA’s industry leadership in engineering, will benefit customers across all markets,” added Daum in a statement. “The future of DTNA’s and Zonar’s products will evolve, but our ultimate focus is on increasing efficiency and safety – benefitting everyone on the road.”
Dr. Wolfgang Bernhard, a member of the board of management for Daimler AG, added that the minority stake in Zonar positions makes perfect sense because telematics and connectivity “are revolutionizing commercial vehicle operation.” As such, “enormous opportunities” are becoming available to OEMs, especially when working with a “pioneer” in the field such as Zonar.
“That is exactly why we made connectivity a dedicated part of our strategy,” he added.
