TOKYO, 11th June 2025: Toyota and Daimler Truck are poised to merge their commercial vehicle units, Hino Motors and Mitsubishi Fuso, under a new holding company by April 2026.
This significant deal includes a $1 billion transfer of Hino’s key manufacturing plant to Toyota and aims to fast-track the development of electric and autonomous trucks. Both automakers are responding to rising costs and increasing competition in the global market.
In the new entity, Toyota and Daimler Truck will each hold a 25% stake. The details of the ownership structure and the company’s name are expected to be finalized in the coming months. This merger comes as traditional truck manufacturers strive to pool resources and reduce costs to remain competitive in the rapidly changing landscape of zero-emission commercial transport.
As part of the merger, Hino Motors will transfer its Hamura manufacturing plant to Toyota for approximately $1 billion, a key aspect of the transaction that enhances Toyota’s direct control over Hino’s core production assets. Hino will also issue new shares to facilitate this restructuring.
“This merger is a pivotal step toward a shared future,” said Toyota CEO Koji Sato. “It strengthens our ability to deliver advanced, sustainable mobility solutions for the next era of transportation.”
Both businesses are addressing growing pressures in the commercial vehicle market, such as rising R&D costs, supply chain disruptions, and labour shortages, with this finalised agreement building upon a preliminary agreement announced two years ago.
Hino is currently recuperating from a major setback following its emissions-testing scandal in 2022, which negatively affected Toyota's reputation and its position in the commercial vehicle industry.
Given that Mitsubishi Fuso's poor performance has hurt earnings recently, Daimler Truck sees the merger as a chance to increase profitability. According to analysts, the combined scale will result in sourcing, production, and R&D efficiencies.
Additionally, Toyota made it clear that its independent strategic partnerships with Volvo and Isuzu Motors, both of which have joint ventures with Daimler Truck, will not be impacted by this merger.
The Hino-Fuso merger is a strategic move to combine strengths and hasten the shift to electric, connected, and autonomous fleets as traditional automakers face increasing challenges in reinventing commercial transportation.
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