Toyota and Daimler to merge truck brands
Toyota and Daimler Truck confirmed this week that they will finalise the merger of their respective commercial fleet vehicle subsidiaries, Hino Motors and Mitsubishi Fuso Truck and Bus, under a new holding company that they hope will be listed by April 2026. The new combined entity will be led by Mitsubishi Fuso CEO Karl Deppen.
The merger is all about reducing costs and increasing profitability. Their joint aim is to also accelerate the development of electric and hydrogen-powered truck drivetrain technologies and also autonomous trucks. Consolidation and collaboration will reduce research and development and other major costs such as dealing with tougher environmental regulations. It is also clearly a response to growing competition from Chinese rivals.
The deal brings together Toyota unit Hino Motors with Daimler Truck subsidiary Mitsubishi Fuso Truck and Bus. The plan is that Toyota and Daimler Truck will each hold a 25 per cent stake of the (listed) holding company of the integrated Mitsubishi Fuso and Hino. The yet-to-be-named holding company plans to own 100 per cent of Mitsubishi Fuso and Hino. The precise remaining ownership structure will be negotiated in the coming months.
Word coming out of Germany is positive on the merger, in that it should help improve Mitsubishi Fuso’s profitability, which has impacted negatively on Daimler Truck’s profitability in recent years.
Toyota is also a major stakeholder in Isuzu. Toyota has pointed out that this new deal will not impact its relationship with Isuzu or the other unconnected strategic alliance between Isuzu and Volvo, with which Daimler Truck also maintains a joint venture.
Karl Deppen, CEO, Mitsubishi Fuso and designated CEO of new holding company said: “Today is a great day for all our stakeholders. We are shaping the industry by bundling our strengths.
“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. I feel honored and excited to be the designated leader of the new company and am grateful for the trust and encouragement from Toyota and Daimler Truck to make it happen.”
Satoshi Ogiso, CEO, Hino commented: “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 each other and contributes to society under the same shared aspirations. As a new commercial vehicle company rooted in Japan, we will work together to create an ever better future.”
Karin Rådström, CEO, Daimler Truck added: “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 successfully shape the decarbonization of transportation.
“Together, Mitsubishi Fuso and Hino Motors have great potential to leverage scale―and scale is key to win in the technological transformation of our industry. Karl Deppen is an experienced and strong leader who comprehends the whole value chain of our business, and I’m therefore convinced that he can bring the new company to the next level.”
Koji Sato, CEO, Toyota concluded: “We believe that the future is for us to build together. 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.”