Core Viewpoint - Toyota and Daimler Trucks have reached a final agreement to merge their subsidiaries, Hino Motors and Mitsubishi Fuso Truck and Bus Corporation, by April 2026, aiming to create a new holding company and list it on the Tokyo Stock Exchange, significantly impacting the competitive landscape of Japan's commercial vehicle sector [2][3]. Group 1: Merger Details - Toyota currently holds 50.11% of Hino, while Daimler Trucks owns 89.3% of Mitsubishi Fuso. The new holding company will be jointly owned, with both companies holding 25% of the shares, but with differing voting rights [3]. - The new company will be headquartered in Tokyo, employing over 40,000 staff, with Karl Deppen, the current CEO of Mitsubishi Fuso, appointed as CEO of the new entity [3]. - The merger aims to enhance competitiveness in the global commercial vehicle market by integrating resources and maintaining brand and sales networks in Japan and overseas [8]. Group 2: Background and Challenges - The merger follows a scandal involving Hino's falsification of engine emissions and fuel efficiency data, which severely impacted its financial performance, leading to significant losses in fiscal years 2021 and 2022 [4]. - Hino faced collective lawsuits in multiple markets, including the U.S. and Australia, but reached a $1.2 billion settlement with the U.S. Department of Justice in January 2025, allowing merger negotiations to progress [5]. - The merger is seen as a strategic response to the urgent need for the commercial vehicle industry to transition towards electrification and automation, with significant investments required to remain competitive [8]. Group 3: Strategic Implications - The merger is viewed as a critical move for Japan's automotive industry to adapt to global supply chain restructuring, aiming to enhance bargaining power and risk resilience in the market [9]. - Both companies plan to collaborate on next-generation technologies, including decarbonization and autonomous driving, leveraging Toyota's e-TNGA electric platform and fuel cell technology [9]. - The merger is expected to solidify Japan's position in traditional markets like Southeast Asia and the Middle East, especially in light of the rapid expansion of Chinese commercial vehicle brands [10].

Core Viewpoint - The merger between Hino Motors and Mitsubishi Fuso aims to enhance competitiveness in R&D, procurement, and production within the commercial vehicle sector [1][5]. Group 1: Merger Details - Hino and Mitsubishi Fuso will establish a holding company headquartered in Tokyo, with both companies becoming wholly-owned subsidiaries of the new entity [3]. - Daimler Trucks and Toyota will each hold a 25% stake in the new company, which will employ over 40,000 people, with Karl Deppen from Mitsubishi Fuso serving as CEO [3]. Group 2: Factory Transfer - Hino announced the transfer of its vehicle and parts factory located in Hamura, Tokyo, to Toyota, which has been operational since 1963, primarily producing small trucks for both Hino and Toyota brands [4]. Group 3: Previous Agreements - The four companies had reached a preliminary agreement in May 2023 to merge their commercial vehicle operations by the end of 2024, but the final agreement was delayed indefinitely due to Hino's engine certification fraud issue [5].