Daimler Truck, Mitsubishi Fuso, Hino and Toyota Motor Corporation have overnight concluded a Memorandum of Understanding (MOU) that facilitates the merging of Mitsubishi Fuso and Hino Motors.
It is understood that Mitsubishi Fuso and Hino will merge on an equal footing and collaborate in the areas of commercial vehicle development, procurement, and production.
A major focus of the collaboration will be the development of hydrogen and other CASE technologies to support the competitiveness of the new company.
Daimler Truck and Toyota have, as part of a joint statement, said they will equally invest in the holding company of the merged Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Hino.
By joining forces, MFTBC and Hino would create synergies and enhance the competitiveness of Japanese truck manufacturers, helping to strengthen the foundation of the Japanese and Asian automotive industries and contributing to their customers, stakeholders and society.
Both Daimler Truck and Toyota count global full lineups tailored to local needs among their corporate strengths and—toward achieving carbon neutrality—value multi-pathways that provide diverse options based on local conditions and how their customers use vehicles.
“Today’s announcement is a crucial step in making that future work economically and in leading sustainable transportation,” said Martin Daum, CEO of Daimler Truck.
“The planned new company will be a major force in Southeast Asia and an important associate of the Daimler Truck family.”
Fuso will more-than-double its resources through the move. The organisation expects, as part of the windfall, to increase its access to knowledge, expertise and a wider network of suppliers and infrastructure with more people working together to develop technology faster.
Karl Deppen, CEO of MFTBC said the close collaboration will enable the four companies to accelerate the decarbonisation of the transportation industry, which in turn, will create an even stronger Japanese commercial vehicle manufacturer.
“This merger will position us as the foremost player in the Asian transportation industry, strong enough to compete with all the new brands we see entering the market, especially outside of Japan,” he said.
It was exciting news welcomed by Daniel Whitehead, Daimler Truck Australia Pacific President and CEO.
“We look forward to sharing more details about this closer to the planned agreement conclusion at the end of next year,” he said.
The merger is anticipated to also help overcome increasingly fierce global competition in the commercial vehicle sector as OEMs jostle to achieve carbon neutrality.
“Through these efforts, we will strive to tackle societal challenges such as achieving carbon neutrality,” said Satoshi Ogiso, Hino CEO.
Details on the scope and nature of the collaboration including the name, location, shareholding ratio and corporate structure of the new holding company will be decided over the course of the next 18 months.
The parties envisage signing of definitive agreements in the first quarter of 2024 and aim to close the transaction by the end of 2024.
Once all parties involved reach an agreement, they will move forward based on the approval of the relevant boards of directors, shareholders, and authorities.
“Our four companies will work together with a shared vision of achieving carbon neutrality by strengthening CASE technologies and of changing the future of commercial vehicles and building the future together by solving social issues,” said Koji Sato, CEO of Toyota Motor Corporation.
Earlier in the month, Daimler announced the launch of a new specialty battery electric vehicle brand in the United States.
