Bus Industry News, International

Hino and Fuso merge as major four party deal combines

In major news, Hino and Fuso have announced a huge merge, with two other vehicle giants jumping in on a four-way deal to advance bus and truck technologies

In a Memorandum of Understanding (MoU) signed overnight, Daimler Truck, Mitsubishi Fuso, Hino and Toyota Motor Corporation have all decided to combine to accelerate advanced technologies development, with Hino and Fuso merging.

The MoU means Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Hino Motors will merge as companies as early as next year.

Daimler Truck, MFTBC, Hino, and Toyota will collaborate toward achieving carbon neutrality and creating a prosperous mobility society by developing connected/ autonomous and automated/ shared electric (CASE) technologies and strengthening the commercial vehicle business on a global scale.

From a local perspective, Daimler Truck Australia Pacific President and CEO Daniel Whitehead is celebrating the news.

“This is exciting news for both Fuso and Hino globally and in Australia,” he says.

“We look forward to sharing more details about this closer to the planned agreement conclusion at the end of next year.”

MFTBC and Hino will merge on an equal footing and collaborate in the areas of commercial vehicle development, procurement and production. They will build a globally competitive Japanese commercial vehicle manufacturer.

Daimler Truck and Toyota will then equally invest in the merged company, allowing all parties to collaborate on the development of hydrogen and other CASE technologies to support the competitiveness of the new company.

Common to the corporate philosophies of all four companies is the desire to contribute to a prosperous society through mobility. To continue to be an essential force of transformation in the world, the four companies intend to promote the use of environmentally friendly vehicles and increase the value of mobility in the world’s social systems.

By joining forces, MFTBC and Hino will create synergies and enhance the competitiveness of Japanese truck manufacturers, helping to strengthen the foundation of the Japanese and Asian automotive industries and contributing to their customers, stakeholders and society.

Both Daimler and Toyota count global full lineups tailored to local needs among their corporate strengths and—toward achieving carbon neutrality—value multi-pathways that provide diverse options based on local conditions and how their customers use vehicles.

“We at Daimler are very proud of our products, because trucks and buses keep the world moving,” Daimler CEO Martin Daum says.

“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 family.”

Toyota Motor Corporation CEO Koji Sato says: “This collaboration among our four companies is a partnership for creating the future of commercial vehicles in Japan and the future of mobility society.

“Our four companies will work together with a shared vision of achieving carbon neutrality by strengthening CASE technologies and of changing the future of commercial vehicles and building the future together by solving social issues.”

MFTBC CEO Karl Deppen says the close collaboration will enable the company to accelerate the decarbonisation of the transport industry to create a stronger Japanese commercial vehicle manufacturer.

“Under the two well-established brands of FUSO and Hino, we will continue to take a leading role in serving customer needs in Japan, Asia and beyond,” Deppen says.

Hino CEO Satoshi Ogiso says the united aspirations of the companies aim to support mobility and contribute to society.

“We will also look to accelerate advanced technology development in order to overcome the increasingly fierce global competition,” Ogiso says.

“Through these efforts, we will strive to tackle societal challenges such as achieving carbon neutrality.”

Details on the scope and nature of the collaboration including the name, location, shareholding ratio and corporate structure of the new holding company will be decided over the course of the next 18 months.

The parties envisage signing definitive agreements in the first quarter of 2024 and aim to close the transaction by the end of 2024.

Once all parties involved reach an agreement, they will move forward based on the approval of the relevant boards of directors, shareholders and authorities.

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