Daimler Truck and Toyota Unite Their Truck Subsidiaries in Asia

In a significant move within the commercial vehicle sector, Daimler Truck and Toyota have announced the formation of a joint venture that will merge their respective truck operations in Asia. This collaboration involves the integration of Mitsubishi Fuso and Hino Motors, marking a pivotal step in the evolution of both companies in the competitive automotive market.

The partners will each hold a 25% stake in the newly established holding company, while the remaining 50% will be available to external investors. This joint venture is slated to commence operations in April 2026, with plans for it to be publicly listed on the Tokyo Stock Exchange.

With a workforce exceeding 40,000 employees, the new enterprise will be spearheaded by Karl Deppen, the head of Daimler Truck's Asian operations. The collaboration aims to enhance joint efforts in development, procurement, and production, thereby streamlining operations and fostering innovation.

Daimler Truck's CEO emphasized the significance of this partnership, noting that it combines the strengths of two formidable entities to create a more powerful organization capable of effectively addressing the challenges of decarbonizing transportation. The merger is viewed as a historic step in the integration of Mitsubishi Fuso and Hino.

Toyota's leadership echoed these sentiments, highlighting the necessity of collaboration to shape the future of the industry. The merger is expected to generate substantial economies of scale, which are crucial for successfully navigating the technological transformations currently underway in the sector.

This initiative follows a memorandum of understanding that the two companies signed two years ago, although progress had been impeded by various challenges, including issues related to emission certifications for Hino's engines.

In terms of performance, Daimler Truck Asia reported the sale of 102,870 commercial vehicles in the previous year, with revenues reaching EUR4.9 billion. The segment's earnings before interest and taxes (EBIT) stood at EUR225 million. It is noteworthy that the figures do not include sales from the Indian market or China, as these operations have recently transitioned to Mercedes-Benz Trucks.