Truck units of Toyota and Daimler reach merger deal
The truck divisions of Japan's Toyota and Daimler of Germany have agreed to merge to form 'a new strong Japanese truck powerhouse' to work together in vehicle development, procurement and production.
Details, including the scope and specifics of the collaboration, were still undecided. But Hino Motors and Mitsubishi Fuso Truck and Bus Corp plan to form a listed holding company by April 2026, the companies said Tuesday.
A tentative such deal was announced two years ago.
Under the integration, which will be 'on an equal footing,' Daimler Truck and Toyota Motor Corp. will each own 25% of the holding company.
The Tokyo-based holding company will own 100% of Mitsubishi Fuso and Hino, and list on the Tokyo Stock Exchange.
The chief executive will be Karl Deppen, now CEO of Mitsubishi Fuso, a division of Daimler Truck AG.
'Today is a great day for all our stakeholders. We are shaping the industry by bundling our strengths,' Deppen said.
'With a strong new company, we combine our two trusted brands, our resources, competencies and expertise to even better support our customers in their transportation needs in the future.'
The new company, which still needs approval from boards, shareholders and regulatory authorities, will employ more than 40,000 workers.
The companies share the common desire to work on future commercial vehicles, strengthening the auto industry in Japan and Asia, and work on ecological innovation, including the use of hydrogen energy, the companies said.
Toyota Chief Executive Koji Sato expressed hopes the companies working together will contribute toward building a better future.
'Today's final agreement is not the goal but the starting line. Our four companies, aiming to achieve a sustainable mobility society, will continue to create the future of commercial vehicles together,' he said.
Collaboration and the pooling of resources, including money, are becoming widespread in the auto industry, as pressures grow to develop various technology in ecology, autonomous driving, connectivity and safety. And scale can help reduce costs and boost competitiveness.
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