Toyota Motor Corporation and Daimler Truck agreed on merging Hino Motors and Mitsubishi Fuso Truck and Bus Corporation into a new unit, with the goal of unifying their efforts in commercial vehicle development, procurement, and production.
The companies signed a Memorandum of Understanding on Tuesday, May 30, with the definite agreement set to be signed in the first quarter of 2024, and the transaction to be completed by the end of 2024. The name, location, shareholding mix, and corporate structure of the new company will be decided and announced over the next 18 months. The new entity will be listed on the Japanese stock market, with both parties equally investing in it.
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As reported by Reuters, the sales organization globally for Hino and Mitsubishi Fuso will remain separate. The new venture will focus on developing CASE technologies (Connected/Autonomous & Automated/Shared/Electric) and enhance the “competitiveness of Japanese truck manufacturers” both in the Asian region and globally.
Koji Sato, CEO of Toyota said that they “will work together with a shared vision of achieving carbon neutrality”. Martin Daum, CEO of Daimler Truck said that the announcement is “a crucial step in making the zero-emission future work economically”, describing the new company as “a major force in Southeast Asia and an important associate of the Daimler Truck family”.
Daimler Truck’s CEO said that hydrogen is the future of the industry, so the two parties will continue working on it for future zero-emission trucks and buses. Hydrogen is thought to be more suitable for commercial vehicles as it doesn’t require the large and heavy batteries of EVs. At the same time, the refueling network is much easier to set up compared to passenger vehicles, as the majority of trucks and buses use fixed routes.
The deal comes one year after Hino admitted to falsifying emission data for commercial vehicles since 2003, leading to a strong hit in its reputation and finances.
