Toyota and Daimler have reached an agreement to merge their truck divisions to form ‘a new strong Japanese truck powerhouse.’ The collaboration will focus on advancing vehicle development, streamlining procurement, and optimizing production.
After more than two years of negotiations, Daimler Truck and Toyota have officially finalized the agreement. Through the merger, their Japanese commercial vehicle subsidiaries, Mitsubishi Fuso and Hino Motors, will unite. The newly formed holding company is expected to begin operations in April 2026, marking a milestone in the commercial vehicle industry.
Daimler Truck and Toyota Motor Corporation initially declared the plan to merge Mitsubishi Fuso and Hino Motors in May 2023 on equal terms. The exact scope and specific aspects of the collaboration had yet to be determined.
As part of the integration, Daimler Truck and Toyota Motor Corp. will each hold a 25% stake in the holding company, ensuring an equal partnership. The Tokyo-based entity will have full ownership of Mitsubishi Fuso and Hino and will be publicly listed on the Tokyo Stock Exchange.
Karl Deppen, currently serving as CEO of Mitsubishi Fuso, a division of Daimler Truck AG, will take on the role of chief executive.
The formation of new company is still subject to approvals from boards, shareholders, and regulatory authorities. Once finalized, it will provide employment to over 40,000 people.
The companies share a vision to advance commercial vehicle development, strengthen Japan and Asia’s automotive industry, and promote ecological innovation, particularly through advancements in hydrogen energy.
Hino Motors, the truck manufacturing division of Toyota, saw a sharp decline in its share price on Wednesday following the announcement of the merger.
The decision is regarded as a strategic effort to remain competitive amid uncertainty surrounding U.S. trade tariffs and the rise of new Chinese competitors. The newly established company will prioritize developing vehicles powered by new fuels and advanced technologies, including electric and hydrogen-powered trucks, as well as autonomous driving systems.
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