Daimler Truck, Mitsubishi Fuso Truck and Bus Corporation (MFTBC), Hino Motors Ltd., and Toyota Motor Corporation have entered into a Memorandum of Understanding (MoU) to strengthen the commercial vehicle business globally and develop advanced technologies, with a focus on achieving carbon neutrality and creating a prosperous mobility society.

Likely the largest news out of this announcement for commercial fleets: MFTBC and Hino will merge and collaborate in commercial vehicle development, procurement, and production, building a globally competitive Japanese commercial vehicle manufacturer.

“We will unite our aspirations to support mobility and contribute to society and, hand in hand, accelerate advanced technology development in order to overcome the increasingly fierce global competition. Through these efforts, we will strive to tackle societal challenges such as achieving carbon neutrality," said Satoshi Ogiso, CEO of Hino.

Daimler Truck and Toyota will invest equally in the holding company of the merged MFTBC and Hino, collaborating on the development of hydrogen and other Connected/Autonomous & Automated/Shared/Electric (CASE) technologies.

“We at Daimler Truck are very proud of our products, because trucks and buses keep the world moving. And soon they will even do so with zero emissions. So there is a great future ahead – and today’s announcement is a crucial step in making that future work economically and in leading sustainable transportation. The planned new company will be a major force in Southeast Asia and an important associate of the Daimler Truck family," said Martin Daum, CEO of Daimler Truck. 

The four companies aim to promote the use of environmentally friendly vehicles and increase the value of mobility in the world's social systems. This collaboration will help strengthen the foundation of the Japanese and Asian automotive industries, contributing to customers, stakeholders, and society.

Details of the collaboration will be decided over the next 18 months, and definitive agreements are expected to be signed in the first quarter of 2024, with the transaction closing by the end of 2024.

Potential to Reduce Dependence on the Chinese Market

According to a report from Reuters, the deal to combine Daimler Truck and Toyota Motor Corp. truck units in Japan will give the German group a more "balanced" market position in Asia and reduce its reliance on China, Daimler Truck's CEO said.

During a conference call, Martin Daum noted tie-up would have no effect on its operations in the Chinese market. But later when asked whether the deal hoped to achieve greater independence from China, he said: "You could see that as a consideration for the whole thing."