Daimler Truck, Toyota Motor Corporation, Mitsubishi Fuso Truck and Bus Corporation (MFTBC), and Hino Motors Ltd. announced they have entered into a Memorandum of Understanding (MoU) on accelerating the development of advanced technologies.

The MoU also has a focus on achieving carbon neutrality and creating a prosperous mobility society.

Details of the Collaboration

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

Meanwhile, Daimler Truck and Toyota will equally invest in the (listed) holding company of the merged MFTBC and Hino.

They will collaborate on the development of hydrogen and other CASE technologies.

By joining forces, MFTBC and Hino would help strengthen the foundation of the Japanese and Asian automotive industries and contribute to their customers, stakeholders, and society.

“This collaboration among our four companies is a partnership for creating the future of commercial vehicles in Japan and the future of mobility society," said Koji Sato, CEO of Toyota Motor Company. "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.”

Details on the scope 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 of definitive agreements in the first quarter of 2024 and aim to close the transaction by 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.