Core Viewpoint - Hino Motors is pursuing a merger with Mitsubishi Fuso, setting financial targets to improve operating profit margins to 5% by FY2026 and 8% by FY2030, while initiating efficiency optimization plans before the merger is finalized [1][3][7] Group 1: Merger Background and Financial Goals - The merger plan between Hino and Mitsubishi Fuso was initiated in May 2023, with the aim to complete integration by the end of 2024, but was delayed due to Hino's emissions scandal [3] - Hino faced significant financial losses due to the scandal, reporting net losses of 84.7 billion yen in FY2021 and 117.6 billion yen in FY2022, prompting the need for external capital and the merger [3] - The new holding company will have Toyota and Daimler Trucks each holding 25% of shares, with Daimler having a slight edge in voting rights, indicating Hino's departure from being a subsidiary of Toyota [6] Group 2: Cost Management and Operational Efficiency - Hino plans to achieve its operating profit margin targets primarily through internal efforts and operational synergies post-merger, with a focus on reducing the variety of key components by 50% [7] - The company anticipates a net loss of 217.7 billion yen in FY2024 due to substantial settlement costs, necessitating cost-cutting measures in the following years [7] - Hino has already sold its Hamura plant for 150 billion yen to Toyota, which will be used to cover losses and invest in electrification [7] Group 3: Industry Context and Competitive Landscape - The merger is seen as a strategic response to the dual challenges of electrification and globalization in the commercial vehicle sector, with the new entity expected to form a significant competitive group alongside Isuzu and UD Trucks [8] - The consolidation aims to enhance scale and competitiveness against the rapid expansion of Chinese commercial vehicle brands in overseas markets, particularly in Southeast Asia and the Middle East [8]