Global auto giants Toyota Motor Corporation and Daimler Truck have reached definitive agreements for the merger of their key subsidiaries - Mitsubishi Fuso and Hino - to establish a new strong Japanese truck powerhouse that will co-operate in the areas of commercial vehicle development and production.

 

Announcing the big move, the duo said the new combined company now boasts more than 40,000 employees and will have the scale, resources, and technology leadership to shape the future of the commercial vehicle landscape in the Asia-Pacific region and beyond.

 

The auto gaints said they were now looking to list the holding company on Tokyo Stock Exchange and to launch its operations in April next year.

 

Under this new deal, both Daimler Truck and Toyota will each aim to own 25% of the (listed) holding company of the integrated Mitsubishi Fuso and Hino.

 

By integrating Mitsubishi Fuso and Hino Motors, the companies aim to improve business efficiency in areas such as development, procurement and production. 

 

With this, they expect to significantly enhance the competitiveness of Japanese commercial vehicle manufacturers and strengthen the foundation of the automotive industry in Japan and Asia, it stated.

 

Daimler Truck AG President and CEO Karin Rådström, Mitsubishi Fuso Truck and Bus Corporation President and CEO Karl Deppen, Hino Motors President and CEO Satoshi Ogiso and Toyota Motor Corporation President and CEO Koji Sato signed the agreement that will pave the way for establishment of a new strong Japanese truck powerhouse.

 

Rådström said: "The now decided integration of Mitsubishi Fuso and Hino Motors is truly historic. We are bringing together two strong partners to form an even stronger company and to successfully shape the decarbonization of transportation."

 

"Together, Mitsubishi Fuso and Hino Motors have great potential to leverage scale – and scale is key to win in the technological transformation of our industry. Karl Deppen is an experienced and strong leader who comprehends the whole value chain of our business, and I’m therefore convinced that he can bring the new company to the next level," he stated.

 

Sato said: "At Toyota, we believe that the future is for us to build together. Today’s final agreement is not the goal but the starting line. Our four companies, aiming to achieve a sustainable mobility society, will continue to create the future of commercial vehicles together.”

 

On the strategic move, Deppen, who is also the designated CEO of new holding company, said: “Today is a great day for all our stakeholders. We are shaping the industry by bundling our strengths. With a strong new company we combine our two trusted brands, our resources, competencies and expertise to even better support our customers in their transportation needs in the future."

 

"I feel honored and excited to be the designated leader of the new company and am grateful for the trust and encouragement from Toyota and Daimler Truck to make it happen," he stated.

 

Ogiso said: "Cooperation among these 4 companies is truly “once-in-a-lifetime opportunity”. In addition to operational synergy, we can expect immeasurable synergy affection from synthesizing different culture and climate of us."

 

"Under commonly aimed aspiration, we are confident with building strong and resilient team to empathizing with each other and contributing to society. As a new commercial vehicle company rooted in Japan, we collaboratively create ever better future,” he added.-TradeArabia News Service