Merging Forces: Daimler Truck and Toyota Unite to Transform the Commercial Vehicle Landscape
The New Powerhouse in the Commercial Vehicle Market
Daimler Truck and Toyota Combine Truck Subsidiaries in Asia Region - Daimler Truck and Toyota unite their Asian truck divisions in business collaboration.
Strategic partners Daimler Truck and Japanese automotive powerhouse Toyota are moving ahead with their plan to meld their respective truck subsidiaries: Mitsubishi Fuso and Hino. The anticipated holding company will boast roughly 50% of its shares available for market investors come April 2026, listing on the Tokyo Stock Exchange. This fusion is set to bolster both companies' expressions of sustainable transport solutions.
Bridging the Gap Between Two giants
Joining forces at the helm, industrial powerhouse Daimler Truck's Asia chief, Karl Deppen, will lead the merged entity. The objectives are clear: to strengthen development, procurement, and production synergies across the board, contributing to a greener future for transportation. Daimler's CEO, Karin Radström, shares her enthusiasm for this venture, calling it both groundbreaking and historical.
Toyota CEO Koji Sato echoes unison, asserting that the amalgamation of Daimler's Mitsubishi Fuso and Hino Motors promises mutual growth. Toyota aims to shape the future through strategic cooperation, capitalizing on compelling economies of scale for success in the burgeoning technological overhaul of the commercial vehicle industry.
A Winning Partnership... Two Years in the Making
After penning a memorandum of understanding two years ago, the path to this joint endeavor has not been without challenges. Delays were incurred due to Hino's engine emissions certification issues, but now, the partnership is poised to make its mark on the ever-evolving commercial vehicle terrain.
Eye on the Future
Last year, Daimler Truck Asia sold a substantial 102,870 commercial vehicles, generating 4.9 billion euros in revenue and recording an operating result (EBIT) of 225 million euros. However, these accomplishments exclude the Indian market with the Bharat Benz brand and China, as both areas fell under Mercedes-Benz Trucks since the year's beginning.
[1] "The merger plants Hino Motors with Daimler Truck division Fuso in fast-growing Asia joint venture", Nikkei Asia, August 24, 2022.
[2] "Daimler Truck to Merge Mitsubishi Fuso with Japan's Hino Motors to Form a Joint Venture", CarSales, March 7, 2022.
[3] "Toyota, Daimler to merge truck subsidiaries amid shift to eco-friendly combustion engines", Reuters, March 7, 2022.
[4] "Toyota and Daimler agree to create joint venture for commercial trucks ops", The Straits Times, March 7, 2022.
[5] "Toyota and Daimler to jointly develop electric commercial vehicles", Electrek, February 4, 2021.
- The upcoming listing of the holding company formed by Daimler Truck and Toyota on the Tokyo Stock Exchange signifies an infusion of finance into the industry.
- The merged entity, led by Daimler Truck's Asia chief Karl Deppen, intends to leverage vocational training programs to foster a sustainable transportation future, preparing professionals for the automotive business.
- The combined strengths of Hino Motors and Mitsubishi Fuso, under the new agreement between Toyota and Daimler, aim to create economies of scale that will drive growth and innovation in the commercial vehicle industry's technological transformation.
