Daimler Truck and Toyota have finalised an agreement to merge their Mitsubishi Fuso and Hino businesses into a “Japanese truck powerhouse”.

The agreement comes more than two years after talks first started and set out plans for “bundling forces” in a move “to the benefit of all stakeholders”.

The merger includes plans for a new listed holding company, headquartered in Tokyo, Japan and expected to start operations in April 2026.

The company plans to own 100% of Mitsubishi Fuso and Hino, with Daimler Truck and Toyota each having a 25% stake. The intention is to list the company on the Prime Market of the Tokyo Stock Exchange.

The combined company will have over 40,000 employees “with the scale, resources and technology leadership to shape the future of the commercial vehicle landscape in the Asia-Pacific region and beyond”.

Further details on the scope and nature of the collaboration, including the name of the new holding company, are intended to be announced over the coming months.

Closure of the deal is subject to approval from the relevant boards, shareholders and authorities.

By integrating Mitsubishi Fuso and Hino Motors, the companies aim to improve business efficiency in areas such as development, procurement and production. With this, they expect to significantly enhance the competitiveness of Japanese commercial vehicle manufacturers and strengthen the foundation of the automotive industry in Japan and Asia.

Karl Deppen, CEO of Mitsubishi Fuso and designated CEO of the new holding company, said: “Today is a great day for all our stakeholders. We are shaping the industry by bundling our strengths. With a strong new company we combine our two trusted brands, our resources, competencies and expertise to even better support our customers in their transportation needs in the future. I feel honoured and excited to be the designated leader of the new company and am grateful for the trust and encouragement from Toyota and Daimler Truck to make it happen.”

Karin Rådström, CEO of Daimler Truck, said the integration of Mitsubishi Fuso and Hino Motors was “truly historic”.

“We are bringing together two strong partners to form an even stronger company and to successfully shape the decarbonisation of transportation. Together, Mitsubishi Fuso and Hino Motors have great potential to leverage scale – and scale is key to win in the technological transformation of our industry.”

Koji Sato, Toyota’s CEO, said: “We believe that the future is for us to build together. Today’s final agreement is not the goal but the starting line. Our four companies, aiming to achieve a sustainable mobility society, will continue to create the future of commercial vehicles together.”