Toyota and Daimler Truck confirmed on Tuesday that they will finalize the merger of their respective commercial fleet vehicle subsidiaries, Hino Motors and Mitsubishi Fuso Truck and Bus, under a new holding company by April 2026. The move aims to reduce costs, increase profitability, and accelerate the development of electric and autonomous truck technologies.
Under the terms of the agreement, Toyota and Daimler Truck will each hold a 25% stake in the new company. Hino Motors, which is majority-owned by Toyota, will issue new shares and transfer its Hamura manufacturing plant to Toyota for approximately $1 billion. The remaining ownership structure will be determined in the coming months as details of the holding company’s name and scope are finalized.
The finalized agreement also builds on a preliminary deal reached two years ago as both automakers respond to mounting pressures in the commercial vehicle market. Rising research and development (R&D) costs, labor shortages, stricter environmental regulations, and a growing demand for electric and self-driving trucks are pushing legacy manufacturers to consolidate and collaborate.
Although Toyota CEO Koji Sato described the merger as a pivotal step toward a shared future, the merger comes as Hino continues to recover from an emissions-testing scandal that surfaced in 2022, where it was found to have falsified emissions data for years. The controversy hurt Toyota’s brand and further complicated Hino’s performance.
For Daimler Truck, the merger could help improve overall margins, as Mitsubishi Fuso’s lagging earnings have weighed down profitability in recent years. Analysts believe the combined scale and integration could help streamline production and development efforts.
Some industry observers initially questioned why Toyota opted to merge Hino with Fuso instead of Isuzu Motors, another commercial truck manufacturer in which Toyota holds a major stake. Toyota has stated that the deal will not impact its ongoing relationship with Isuzu or the separate strategic alliance between Isuzu and Volvo, which maintains a joint venture with Daimler Truck.
