TOKYO, June 10 (Xinhua) -- Toyota Motor Corp. and Daimler Truck Holding AG said Tuesday they have reached an agreement to merge their Japanese truck subsidiaries under a new holding company, aiming to better respond to increasing challenges from lowering carbon emissions to competing with emerging overseas rivals.
Under the agreement, Hino Motors Ltd., a unit of Toyota Motor, and Mitsubishi Fuso Truck and Bus Corp., a subsidiary of Daimler, will operate under the holding company to be set up in April 2026 and listed on the prime market of the Tokyo Stock Exchange.
The new firm, in which Toyota and Daimler Truck will each hold a 25 percent stake, will have more than 40,000 employees and be led by Mitsubishi Fuso Truck CEO Karl Deppen.
"Scale matters in our industry," Deppen said at a press conference on the same day, adding, "The Japanese market cannot support so many commercial vehicle manufacturers."
Satoshi Ogiso, president of Hino Motors, said, "The industry for commercial vehicles has numerous issues that need to be addressed. We will require even more speed, flexibility and investment."
Toyota Motor and Daimler Truck plan to announce further details, including the name of the new holding company and specific area of collaboration, over the coming months.
The companies reached an initial agreement in May 2023 that called for them to integrate their operations by the end of 2024, but the merger plan had stalled due to a fraudulent emissions data scandal by Hino Motors.
