Toyota and Daimler agree to merge truck units in bold partnership
- The truck divisions of Toyota and Daimler have agreed to merge under a new holding company.
- This merger aims to enhance competitive strength and drive technological advancements in the industry.
- The formation of the new company demonstrates the companies' commitment to future ecological innovations.
In Tokyo, the truck divisions of Toyota Motor and Daimler Truck have made an announcement to finalize the merger of their subsidiary companies, Hino Motors and Mitsubishi Fuso Truck and Bus, under a new holding company by April 2026. This strategic collaboration aims to enhance the competitive landscape of the truck manufacturing sector. The merger was initially announced two years prior, but it's only now that the companies have detailed plans for the integration, which is scheduled to transform the industry at a time when technological advancements are necessary. The new holding company will be equally owned by Toyota and Daimler, each holding a 25% stake in this enterprise. Hino Motors is set to issue new shares and transfer its Hamura plant to Toyota for approximately 150 billion JPY (1 billion USD). This financial exchange signals a strong commitment to merging resources and capabilities to innovate in the sector. The alignment of these two major truck manufacturers emerges from a mutual desire to strengthen their market positions and propel the development of advanced technologies, particularly in the realm of ecological innovation, hydrogen energy solutions, and autonomous driving technologies. Karl Deppen, the CEO of Mitsubishi Fuso and the incoming CEO of the new holding company, expressed optimism about the merger, stating it is a significant step towards shaping the future of commercial vehicles. The larger automotive industry is experiencing mounting pressures to innovate and reduce costs through strategic collaborations. The merger will create a workforce of over 40,000 employees and aims to foster further advancements in the commercial vehicle segment, emphasizing the need for a collaborative approach in an era that demands progress towards sustainable mobility solutions. As expressed by Toyota Chief Executive Koji Sato, this collaboration is seen not just as an end goal but as a starting point for a collective journey towards a transformative future in the automotive sector.