Toyota, Hino, Daimler and Mitsubishi are Merging Into a Single Company

Toyota’s Hino Motors and Daimler’s Mitsubishi Fuso Truck and Bus are moving ahead with a long-anticipated merger that could reshape Japan’s commercial vehicle landscape.

According to Nikkei, the companies are preparing to finalize the deal as early as May. They plan to establish a joint holding company and list it on the Tokyo Stock Exchange’s Prime market by April 2026.

Delayed by Scandal

Initially agreed upon in May 2023, the merger was put on hold after Hino’s engine data scandal, which led to a $1.2 billion U.S. penalty. Now, with compliance issues mostly resolved, negotiations have resumed and are nearing completion. The Japan Fair Trade Commission’s antitrust review is also close to wrapping up.

Structure of the New Alliance

Under the proposed structure, the new holding company would own both Hino and Mitsubishi Fuso. Toyota currently holds 50.1% of Hino, while Daimler Truck controls 89.3% of Mitsubishi Fuso. Although Toyota and Daimler are expected to have equal stakes in the holding company, Toyota’s voting power would be capped below 20%, likely in response to antitrust concerns due to Toyota’s ties to Isuzu Motors.

The merger is a strategic response to increasing pressure from electrification, autonomous tech, and geopolitical headwinds, including U.S. tariffs and growing competition from Chinese automakers like FAW Group. In 2024, Daimler Truck sold over 407,000 medium and heavy-duty trucks globally, while Hino sold around 130,000 units across various categories. The combined entity would control roughly 14% of the medium- and heavy-duty truck market.

Once finalized, the merger will split Japan’s commercial vehicle sector into two camps: the Hino-Mitsubishi Fuso alliance and the Isuzu-UD Trucks group. Daimler is also exploring U.S. partnerships to buffer the impact of American trade policy.