Toyota's Hino Motors and Mitsubishi Fuso: A Merger on the Horizon

Toyota's Hino Motors and Mitsubishi Fuso, part of Daimler Truck, are close to finalizing a merger agreement. They plan to create a holding company and list it in 2026. Despite merging operations, both will maintain separate global sales and face technology-driven industry pressures.

In a strategic move within the automotive industry, Hino Motors, a unit of Toyota Motor, and Mitsubishi Fuso Truck and Bus, a subsidiary of Daimler Truck, are nearing the conclusion of a significant merger agreement. According to Nikkei Asia, the two companies are set to create a holding company for their truck units, aiming for a listing on the Tokyo Stock Exchange's Prime market by April 2026.

The merger discussions, which began with an agreement in May 2023 to merge truck operations by the end of 2024, faced a temporary delay earlier this year. Despite this, both companies remain committed to joint development, procurement, and production while keeping their brand identities separate in international markets, where they have substantial exposure.

As the companies anticipate finalizing their merger agreement by May, pending an antitrust review from the Japan Fair Trade Commission, both Hino and Mitsubishi Fuso have made it clear that final decisions on the deal's specifics, including the investment ratio of the new holding company, remain undecided. This merger underscores the growing need for collaboration in the automotive sector amidst shifting technological landscapes.

(With inputs from agencies.)