Toyota and Daimler finalize joint venture agreement in heavy-duty truck sector
In a significant move to strengthen the global commercial vehicle industry, Toyota Motor Corp. and Daimler Truck have agreed to merge their subsidiaries Mitsubishi Fuso and Hino Motors to create a new Japanese truck powerhouse. The new company, which will be listed on the Tokyo Stock Exchange, is expected to start operations in April 2026.
The collaboration aims to focus on the development of connected, autonomous, shared, and electric technologies, including hydrogen, as well as improving business efficiency in development, procurement, and production. Carbon neutrality and logistics efficiency will be key focus areas for the newly combined company.
Karl Deppen, a longtime veteran of Daimler Truck, has been named as the CEO of the new holding company. Deppen, who was named president and CEO of Mitsubishi Fuso in 2022, will lead the company from April 2026. Toyota and Daimler will each aim to own a quarter of the holding company.
However, the previous transaction between Mitsubishi Fuso and Hino was stalled due to an emissions scandal involving Hino's U.S. operations. Hino agreed to plead guilty to decades of emissions testing violations and pay over $1.6 billion in penalties. As a result, Hino is prohibited from importing diesel engines into the U.S. for a five-year probation period due to the plea agreement.
This is not the first time Toyota and Daimler have tried merging their commercial vehicle subsidiaries. In May 2023, they announced a similar deal that would have integrated Mitsubishi Fuso and Hino in 2024.
Scale is key to win in the technological transformation of the industry, according to Daimler Truck. Karin Rådström, CEO of Daimler Truck, stated that the integration aims to shape the decarbonization of transportation.
Additional details about the collaboration, including the name of the holding company, are forthcoming. The new holding company is expected to play a significant role in the future of the commercial vehicle industry, driving innovation and sustainability in the face of growing global challenges.
