Daimler Truck and Toyota combine their Asian truck subsidiaries in business collaboration.
Taking the Trucking Industry by Storm: Daimler Truck and Toyota's Joint Venture Unveiled
In a game-changing move, truck titan Daimler Truck and Japan's automotive powerhouse Toyota are joining forces! Their aim? Merging the truck businesses of their subsidiaries, Mitsubishi Fuso and Hino, to form a powerful new listed holding company. This business collaboration will see the independent duo commanding a healthy 25% stake each, with the remaining half sold to investors. The company will make its grand entrance on the Tokyo Stock Exchange in April 2026.
With over 40,000 employees leading the charge, the new company will be helmed by former Mitsubishi Fuso chief, Karl Deppen. The ambitious goal? Breaking new ground in research, procurement, and production. Daimler Truck CEO, Karin Radström, shared her sentiments, stating, "We're joining forces to create an unstoppable force and drive the transport sector's decarbonization efforts." She further emphasized the merger's historic significance.
Toyota CEO, Koji Sato, chimed in, "Together, we must pave the future." Radström elaborated on the economic advantages of the merge, expressing her belief in economies of scale as the key to success in the industry's technological evolution.
Two Years in the Making
The duo’s ambitious plans have been in the works for two years, although delays arose due to challenges like obtaining emissions certificates for Hino's engines.
Last year, Daimler Truck Asia sold 102,870 commercial vehicles, ringing up sales of €4.9 billion and an operating profit of €225 million. It's worth noting that the figures for the Indian market with the Bharat Benz brand and China, which both have belonged to Mercedes-Benz Trucks since the start of the year, were excluded from these tallies.
What's Next?
The Merger is On!
- Official Green Light: The definitive agreement went through on June 10, 2025, built upon an earlier tentative deal from two years ago.
- Steering the Ship: Former Mitsubishi Fuso CEO, Karl Deppen, will helm the new company.
- Power in Numbers: The new company boasts an impressive employee count of more than 40,000, with resources, technologies, and brands from both Hino and Mitsubishi Fuso coming together.
- Sharing the Wealth: Hino will issue shares and transfer its Hamura plant to Toyota for $1 billion as part of the deal.
Full Speed Ahead!
- Visionary Approach: The merger seeks to create a new powerhouse in Japanese trucking, focusing on innovation, cost reduction, and global competitiveness.
- Embracing Technology: The joint venture will concentrate on the development of cutting-edge commercial vehicle technologies, including hydrogen energy, electrification, autonomous driving, and connectivity (CASE technologies).
- Global Ambitions: The new entity will strengthen its position in the Asia-Pacific region and beyond, addressing global transportation demands and striving for carbon neutrality and logistics efficiency.
- Regulatory Necessities: The merger must receive approval from respective boards, shareholders, and regulatory authorities to proceed as intended in April 2026.
Clearly, this partnership represents a significant step in adapting to challenges facing the commercial vehicle industry, such as labor shortages, stricter environmental standards, and surging development costs. By pooling resources and working together, these giants aim to fast-track innovation and profitability. Keep an eye on this game-changer!
- The joint venture between Daimler Truck and Toyota, aimed at revolutionizing the trucking industry, signifies a strategic move in the finance sector, as both companies seek to command a significant share in the business of commercial vehicles.
- In their pursuit of innovation and cost reduction, the new company, featuring resources and technologies from Hino and Mitsubishi Fuso, will focus on embracing technology, particularly in the development of CASE technologies, to maintain global competitiveness.
