TOKYO: Mitsubishi Fuso Truck and Bus Corp and Hino Motors Ltd will merge on an equal footing and collaborate in the areas of commercial vehicle development, procurement, and production.
In a statement, Daimler Truck Holding AG and Toyota Motor Corp said both Mitsubishi Fuso and Hino will build a globally competitive Japanese commercial vehicle manufacturer, after signing a memorandum of understanding (MoU).
Daimler Truck and Toyota will equally invest in the merged entity of Mitsubishi Fuso and Hino.
"They will collaborate on the development of hydrogen and other CASE (connected/autonomous and automated/shared/electric) technologies to support the competitiveness of the new company," said the companies.
Details on the shareholding ratio and corporate structure of the new holding company will be ironed out over the next 18 months.
The companies aim to sign definitive agreements in the first quarter of 2024, and close the deal by end-2024.
The companies said by joining forces, Mitsubishi Fuso and Hino would create synergies and enhance the competitiveness of Japanese truck manufacturers.
Both Daimler Truck and Toyota count global full lineups tailored to local needs among their corporate strengths and ― toward achieving carbon neutrality ― value multi-pathways that provide diverse options based on local conditions and how their customers use vehicles.
Martin Daum, CEO of Daimler Truck said, "We at Daimler Truck are very proud of our products, because trucks and buses keep the world moving. And soon they will even do so with zero emissions. So there is a great future ahead―and 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."
Koji Sato, CEO of Toyota Motor Corp said, "This collaboration among our four companies is a partnership for creating the future of commercial vehicles in Japan and the future of mobility society."