Two years after announcing the memorandum of understanding, Daimler Truck and Toyota have concluded the agreements for the merger of their subsidiaries Mitsubishi Fuso and Hino Motors. The new company aims to start operations in April 2026 and will be publicly listed on the Tokyo Stock Exchange.
In May 2023, Japanese truck manufacturers Hino and Fuso announced their plans to merge and form a stronger foundation to tackle the decarbonization challenges that face the industry. Initially, the plan was to have a definitive agreement in place by early 2024, but it has taken until now to put everything on paper.
Key points of the Hino-Fuso merger agreement
As part of the agreement, Mitsubishi Fuso (which is 89% owned by Daimler Truck) and Hino (which is fully owned by Toyota) will merge on equal footing and “cooperate in the areas of commercial vehicle development, procurement, and production.”
The new holding company aims to start operations in April 2026 and which will be listed on the Prime Market of the Tokyo Stock Exchange. Karl Deppen, head of Daimler Truck Asia, will become the CEO of the new company, with headquarters in Tokyo. The company will operate globally, but with a focus on the Southeast Asian market.
The holding company will own 100% of Mitsubishi Fuso and Hino (which means the remaining 11% of Fuso will need to be acquired), while Daimler Truck and Toyota will each own 25% of the holding company. No name has been announced yet for the new holding company, but that will be announced in the coming months.
Collaborate on electrification
The plan of the Hino-Fuso merger is to strengthen the Japanese position in the commercial vehicle industry while saving money on development, procurement, and production. This increases the budget to develop electrified trucks, including hydrogen options, which has been a long-standing focus of Toyota’s.
For Hino Motors, the merger is also a lifebuoy. The company fell into disgrace last year when it was revealed that the company had been cheating with emission and fuel economy data, forcing it to halt production of trucks at some of its production plants. The misconduct could be traced back to as far as 2003.
‘Once-in-a-lifetime opportunity’
“The now decided integration of Mitsubishi Fuso and Hino Motors is truly historic. We are bringing together two strong partners to form an even stronger company and to shape the decarbonization of transportation successfully. Together, Mitsubishi Fuso and Hino Motors have great potential to leverage scale―and scale is key to winning in the technological transformation of our industry,” says Karin Rådström, CEO of Daimler Truck.
“The collaboration of these four companies is truly a ‘once-in-a-lifetime opportunity.’ In addition to the business synergies, the synergistic effects arising from the meeting and blending of different cultures and environments are immeasurable. I am confident that we will become a strong and resilient team that empathizes with one another and contributes to society, united by shared aspirations. As a new commercial vehicle company rooted in Japan, we will work together to create an ever better future,” adds Satoshi Ogiso, CEO of Hino.
