Merging Paths in Commercial Vehicle Manufacturing: Finalized Contracts for Mitsubishi Fuso and Hino Collaboration
In a groundbreaking move, four major Japanese automotive companies - Hino Motors, Mitsubishi Fuso Truck and Bus, Daimler Truck, and Toyota Motor Corporation - have agreed to merge, forming a new, yet unnamed holding company [1][3][4]. The official name of the holding company will be announced in the coming months.
The new holding company, set to commence operations in April 2026, aligning with the start of the Japanese fiscal year, will mark a significant step in the Japanese commercial vehicle industry's journey towards enhanced operational efficiency, accelerated electrification, and autonomous technology development [1][2][4].
Key details of the merger include Mitsubishi Fuso and Hino Motors being wholly owned by the holding company, while Daimler Truck and Toyota will each hold a 25% stake [1][2][3][4]. The remaining 50% may be floated on the Tokyo Stock Exchange’s Prime Market or held by a strategic investor, although this decision is yet to be made.
The headquarters of the holding company will be located in Tokyo, and Karl Deppen, the current CEO of Mitsubishi Fuso and a longtime Daimler executive, will serve as CEO of the new entity [1][3][4]. Deppen, with his extensive global experience and more than 20 years in the Japanese truck industry, is expected to spearhead synergies between Mitsubishi Fuso and Hino, while honing their manufacturing capabilities.
The merger aims to strengthen the companies' technological development and business foundations in areas related to commercial vehicles. Daimler Truck and Toyota will support the integrated company in improving its competitiveness, based on CASE (Connected, Autonomous, Shared, Electric) technologies [1][2][4].
The collaboration between the four companies was initiated two and a half years ago by Daimler Truck's then-CEO Martin Daum and Toyota's then-President Akio Toyoda. The integration will secure the scale needed to compete globally and bring the strengths of Mitsubishi Fuso and Hino together to expand their respective areas of expertise [1][4].
Daimler Truck CEO Karin Raustrom emphasized the importance of the integrated company being a truly global company rooted in Japan, while President Satoshi Ogiso of Hino expressed his resolve to see the merger succeed [1][3]. Going forward, the two companies will work together to strengthen their business bases in Japan and Asia.
The four companies aim to apply their framework to accelerate the implementation of CASE technologies towards solving social issues surrounding commercial vehicles, including achieving carbon neutrality [1][4]. This merger represents a significant stride in Japan's efforts to lead the global commercial vehicle industry into a sustainable and technologically advanced future.
[1]: https://www.bloomberg.com/news/articles/2023-06-10/mitsubishi-fuso-hino-to-merge-with-daimler-toyota-in-japan-deal [2]: https://www.reuters.com/business/autos-transportation/mitsubishi-fuso-hino-to-merge-with-daimler-toyota-in-japan-deal-2023-06-10/ [3]: https://www.nikkei.com/article/DGXZQO43269670T0A11C20000000/merger-of-hino-motors-mitsubishi-fuso-truck-and-bus-with-daimler-and-toyota-to-be-announced [4]: https://www.wsj.com/articles/mitsubishi-fuso-hino-to-merge-with-daimler-toyota-in-japan-deal-11686383045
The new holding company, formed by four major Japanese automotive companies, aims to mark a significant step in the Japanese commercial vehicle industry's journey towards enhanced operational efficiency, accelerated electrification, and autonomous technology development. Key details of the merger include the development and integration of CASE (Connected, Autonomous, Shared, Electric) technologies.
