Toyota, Hino and Isuzu join forces

Automotive giant Toyota, its truck subsidiary Hino and rival truck manufacturer Isuzu have announced they are partnering to accelerate the development of the next generation of commercial vehicles, with a focus on battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), autonomous driving technology and connected technology platforms.

While Isuzu and Hino will remain entirely separate wider entities and sales rivals, they will leverage Toyota's existing CASE technologies – the acronym denoting Connected, Autonomous, Shared, and Electric – to help meet the challenges facing the commercial vehicle sector, as nations accelerate efforts to reduce emissions and improve efficiency, on their way to achieving a carbon-neutral society.

The three firms hope to reduce vehicle costs through pooling their resources and expertise, while also linking their connected technology platforms to build a shared platform that will unlock efficiency gains and solve numerous problems for their customers.

The three are establishing a new company, Commercial Japan Partnership Technologies Corporation, to co-ordinate their efforts. Toyota will also acquire 39 million shares of Isuzu common stock, giving it a 4.6 per cent ownership stake in Isuzu, while Isuzu will acquire Toyota shares to the same value.

Commercial Japan Partnership Technologies Corporation has a capitalization of 10 million yen (approximately $A121 million), with Toyota accounting for 80 per cent, Hino 10 per cent, and Isuzu 10 per cent.

The new company will begin operations on April 1, 2021.

In a joint statement, the three companies express the view that CASE and the connected technologies and services it entails will address many issues facing today's commercial vehicle operators, including general transport inefficiencies and driver shortages, among others.

"Solving these kinds of societal issues is not something that one company can accomplish alone," states the release.

"It is necessary to seek a wide range of like-minded counterparts, apply their different strengths, and work together for those supporting transportation and for society.

"Considering this situation, Isuzu, Hino and Toyota have come to believe that Isuzu and Hino must cooperate in promoting CASE support for commercial vehicles and that Toyota must accelerate the societal implementation of its CASE technologies through the commercial vehicle businesses of Isuzu and Hino."

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Isuzu Australia Limited's Director, Andrew Harbison, welcomed the announcement, while underlining the competitive rivalry between Isuzu and Hino in terms of truck sales would continue.

"Through collaboration, the companies are aiming to reduce the final product cost, providing broader access to these new technologies to more customers," he said.

"We've long advocated for strong competition in order to deliver the best outcomes for the road transport industry, and this announcement points to exciting developments and technology solutions for our customers in the future.

"In the meantime, and as emphasised by Isuzu Motors President and Representative Director Masanori Katayama and Hino Motors President and CEO Yoshio Shimo, the two companies will remain fierce competitors in truck sales.

"We look forward to years of healthy Australian truck market rivalry with our competitors Hino, and indeed all local industry OEMs – it only means a better industry."

The technology alliances are coming thick and fast in the commercial vehicle space. Hino recently signed an e-mobility partnership with VW's TRATON Group, Daimler and Volvo Group are collaborating on fuel cell research and development, and at the end of 2019 Isuzu inked a deal with Volvo Group to take control of UD Trucks.