Daimler Truck and Toyota want to join forces to strengthen their Asian business. They also want to work together on the development of hydrogen drives and other future technologies.
The world’s largest truck manufacturer Daimler Truck and the Japanese group Toyota have announced that they will merge their commercial vehicle subsidiaries Mitsubishi Fuso and Hino Motors. A corresponding declaration of intent was signed today.
Both companies are said to be equally involved, details are still being negotiated. A significant portion of the combined company’s shares, which are to be listed on the Tokyo Stock Exchange, are to be held by outside investors.
In addition, Daimler Truck and Toyota agreed to consider possible risks in connection with the scandal surrounding the manipulation of emission values at Hino when evaluating the Toyota subsidiary.
Drive CO2 neutrality
The companies announced that they want to promote CO2 neutrality. To this end, investments should also be made in technologies for networking vehicles and automated driving.
The planned company, whose name has not yet been decided, should be a key player in Southeast Asia and an important partner in the Daimler truck family, announced Daimler truck boss Martin Daum. Toyota CEO Koji Sato added that the alliance will change the future of commercial vehicles.
Completion by the end of 2024
A total of four companies are working together in the truck association: Daimler Truck and its subsidiary Mitsubishi Fuso Truck&Bus, in which the Stuttgart-based company holds an 89.3 percent stake, and Toyota and its listed truck subsidiary Hino.
Details of the scope and nature of the collaboration, including name, location and ownership structure, are to be determined over the next 18 months. Daimler Truck and Toyota want to sign the final contracts early next year, and the transaction is expected to be completed by the end of 2024.
Daimler Trucks had recently felt the effects of the strong competition in Asia. Last year, the division’s adjusted operating profit collapsed by 60 percent, even though sales and revenue increased.