Hino, Fuso set to merge by end of 2024

TOYOTA’S Hino truck division and Daimler-owned Mitsubishi Fuso have signed a memorandum to combine their Japanese truck units by as early the end of 2024. The duo will combine as part of a holding company in which they will equally invest and in which both brands will have an equal footing.

Shares in the new company are expected to be listed on the Tokyo Stock Exchange’s prime market.

Hino and Fuso will utilise the collaboration to achieve the scale required to make technological advances – namely in the arena of autonomous driving – and to take on the might of Isuzu, which sells as many units globally each year as Hino and Fuso combined.

It is understood the global sales and marketing of the vehicles will remain separate, but research and development, procurement and production will be combined.

As part of the newly inked joint venture, Hino and Fuso will also invest equally and cooperate on the development of hydrogen and other CASE (connected, autonomous and automated, shared, electric) technologies.

According to a statement published on Daimler’s website, the pair “will merge on an equal footing and collaborate in the areas of commercial vehicle development, procurement and production” and “will build a globally competitive Japanese commercial vehicle manufacturer”.

The news comes just months after Hino was embroiled in an emissions cheating scandal in which it was found to have falsified ending emissions data dating back to 2003. Four key executives at Hino resigned over the matter, while company president, Satoshi Ogiso, returned half of his pay for a period of six months.

It is a chapter of the now-joined commercial vehicle group both parties wish to leave in the past.

“We at Daimler Truck are very proud of our products, because buses and trucks keep the world moving – and soon they will even do so with zero emissions,” said Daimler Truck CEO, Martin Daum.

“Today’s announcement is a crucial step in making that future work economically and in leading sustainable transportation. The planned new company will be a major force in Southeast Asia and an important associate of the Daimler Truck family.”

Mr Daum’s sentiments were echoed by his counterpart at Toyota Motor Company, Koji Sato, who said the collaboration is beneficial not only to each of the businesses involved, but also to the future of societal mobility.

“This collaboration … is a partnership for creating the future of commercial vehicles in Japan and the future of mobility society (sic). We 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 by solving social issues,” he said.

GoAuto understand that details outlining the scope and nature of the collaboration, including the name, location, shareholding ratio, and corporate structure of the new holding company, will be announced within the next 12-18 months.

Hino and Fuso say they envisage the signing of definitive agreements in the first quarter of next year (2024).