Toyota and Daimler to merge truck subsidiaries

TOKYO

Shares in Hino Motors, the truck-making unit of Japanese auto giant Toyota, plunged on Wednesday after it announced a merger with a subsidiary of Germany's Daimler Truck.

The move is seen as an attempt to stay competitive at a time when global automakers are faced with U.S. trade tariff uncertainty and new Chinese rivals.

The companies had said on June 10 that the integration of Hino and Daimler's subsidiary Mitsubishi Fuso Truck and Bus would "establish a new strong Japanese truck powerhouse."

They said they aimed to complete the merger on an equal footing under a listed holding company by April 2026.

Hino Motors shares were down more than 12 percent in morning trade yesterday.

"Daimler Truck and Toyota will each aim to own 25 percent of the (listed) holding company of the integrated Mitsubishi Fuso and Hino," a joint statement said.

"The companies aim to improve business efficiency in areas such as development, procurement, and production," it said.

"They expect to significantly enhance the competitiveness of Japanese commercial vehicle manufacturers and strengthen the foundation of the automotive industry in Japan and Asia."

The new company will work to develop models using new fuels and technologies, from electric trucks and hydrogen-powered trucks to autonomous driving systems.

Analysts say Japanese firms have lost ground in the EV market in recent years by focusing more on hybrid vehicles, industry analysts say.

China's highly competitive EV market is the largest in the world, led by Shenzhen-based carmaker BYD, which is accelerating its overseas expansion.