According to Bloomberg, Toyota Motor Corporation and Daimler Truck have reached a final agreement to merge their respective commercial vehicle subsidiaries-Hino Motors (a Toyota subsidiary) and Mitsubishi Fuso Truck and Bus Corporation (a Daimler subsidiary)-by April 2026. The merged entity will operate under a new holding company structure, aiming to boost profitability and accelerate the development of new technologies.
In a joint statement released on June 10, the companies confirmed that both Toyota and Daimler Truck will each hold a 25% stake in the new holding company, consistent with the preliminary agreement reached two years ago. As part of the transaction, Hino will issue new shares and transfer its Hamura plant in Japan to Toyota for ¥150 billion (approximately $1 billion USD).
Karl Deppen, CEO of Mitsubishi Fuso and incoming CEO of the new holding company, stated, "This merger will allow Hino and Mitsubishi Fuso to integrate on an equal footing."
Koji Sato, CEO of Toyota Motor Corporation, emphasized, "This final agreement is not the end, but a new beginning. Our four companies are committed to achieving sustainable mobility and shaping the future of commercial vehicles together."
Amid growing industry pressure from electrification, autonomous driving, and tightening emissions regulations, the merger is seen as a strategic response by Toyota and Daimler Truck to address these challenges. By combining their resources, the companies aim to improve profitability and accelerate innovation in the commercial vehicle sector, which faces rising R&D costs, labor shortages, and increasing environmental standards.
Details regarding the name, scope, and structure of the new holding company will be announced in the coming months. Notably, the merger comes as Hino recovers from a data falsification scandal related to emissions figures in the previous fiscal year-a scandal that significantly affected Toyota, which owns over 50% of Hino.
For Daimler Truck, the merger is expected to support its efforts to improve profitability. Mitsubishi Fuso's underperformance had previously dragged down Daimler Truck's overall financial results.
When the merger rumors first surfaced, some industry observers questioned Toyota's choice to partner with Mitsubishi Fuso rather than Isuzu Motors, another company in which Toyota holds a significant stake. Isuzu also maintains a strategic alliance with Volvo Group, which in turn operates a joint venture with Daimler Truck.
Toyota has clarified that the merger will not impact its ongoing partnership with Isuzu Motors, nor will it hinder the formation and operations of the new company between Hino and Mitsubishi Fuso.
