Hino to Leave Toyota's Subsidiary Fold After Fuso Merger

Toyota Motor Corp. is set to lose Hino as a subsidiary after a merger with Fuso. The deal will create the world's largest truck maker, with a combined market value of over $100 billion. The merger is expected to be completed in 2023, subject to regulatory approvals.

In a significant move that promises to reshape the global commercial vehicle (CV) landscape, Toyota Motor Corp. and Daimler have agreed to merge their truck subsidiaries, Hino and Mitsubishi Fuso, respectively. The deal, expected to be completed in 2023 subject to regulatory approvals, will create a new holding company with a combined market value exceeding $100 billion, positioning it as the world's largest truck maker [1][2][3].

The integration, which will be "on an equal footing," will see Toyota and Daimler each owning 25% of the new holding company, with the remaining 50% owned by the merged entities of Hino and Mitsubishi Fuso. The new company will be listed on the Tokyo Stock Exchange and will employ more than 40,000 workers [1][2].

The merger aims to strengthen the competitive position of Japanese CV manufacturers amidst increasing demand for carbon neutrality, logistics efficiency, and digital transformation. By pooling resources, Toyota and Daimler hope to accelerate innovation, particularly in the areas of hydrogen energy and CASE (Connected, Autonomous, Shared, and Electric) technologies [3].

The new holding company will be led by Karl Deppen, the current CEO of Mitsubishi Fuso. The integration will see Hino and Mitsubishi Fuso collaborate across development, procurement, and production, leveraging their respective strengths to create a unified force in the CV sector [3].

This move is part of a broader trend in the auto industry, where collaboration and resource pooling are becoming increasingly common as companies seek to meet the challenges and opportunities presented by technological advancements and regulatory pressures [3].

The deal is expected to face regulatory scrutiny, with both companies noting that shareholder and board approvals are still pending. Despite the regulatory hurdles, the merger is seen as a strategic move to future-proof their businesses and enhance their global competitiveness [3].

References:
[1] https://apnews.com/article/trucks-japan-toyota-daimler-hino-fuso-6442da9d518fbea4f3b46046dc6964b3
[2] https://ca.finance.yahoo.com/news/truck-units-toyota-daimler-reach-133304847.html
[3] https://www.mobilityoutlook.com/news/daimler-toyota-hino-mitsubishi-fuso-seal-landmark-deal-to-reshape-future-of-cvs/