Carbon neutral joint progress and Fuso-Hino merger updated

In early March 2024, Daimler Truck, Mitsubishi Fuso, Hino and Toyota Motor Corporation reported progress on the collaboration that began with a 2023 Memorandum of Understanding.

In May 2023, Daimler Truck, Toyota, Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Hino concluded a Memorandum of Understanding (MoU), to accelerate the development of advanced technologies and the merging of MFTBC and Hino.

The planned collaboration is aimed toward achieving carbon neutrality and creating a prosperous mobility society by developing CASE technologies (Connected/Autonomous & Automated/Shared/Electric) and strengthening the commercial vehicle business on a global scale.

On 1st March 2024 the parties provided an update on the progress on the collaboration based on the MoU.

According to the MoU, MFTBC and Hino plan to merge on an equal footing and collaborate in the areas of commercial vehicle development, procurement and production. The plan is to build a globally competitive Japanese commercial vehicle manufacturer, with Daimler Truck and Toyota investing equally in the listed holding company of the merged MFTBC and Hino.

While the Definitive Agreement for merging MFTBC and Hino was targeted to be signed by the end of March 2024 and integration complete by the end of 2024, the process of obtaining necessary regulatory clearances and approvals under competition and other laws and regulations, as well as the pending investigations related to Hino’s engine certification transgressions, are still ongoing. As such, the original schedule has been extended.

The timing of the envisaged execution of the Definitive Agreement and the implementation of the business integration will be announced as soon as a reliable timeline for the pending investigations is available.

Based on the common desire to "contribute to a prosperous society through mobility”, the four companies have been discussing how MFTBC and Hino can work together to improve business efficiency and enhance competitiveness.

Also under discussion is how Daimler Truck and Toyota can work together to further enhance their technology development capabilities and promote CASE technology.

Through discussions based on integrity, mutual respect and diversity and by understanding each other's strengths and corporate culture, the parties confirmed that the merger discussions are progressing on a positive note and that the strategic objectives and logic of the proposed transaction continues to be valid.