Toyota Motor and Daimler Truck have agreed to finalize a merger of their truck manufacturing subsidiaries, Hino Motors and Mitsubishi Fuso Truck & Bus, under a new holding company by April 2026 as they seek to boost margins and develop new technologies.

Toyota and Daimler will each own a quarter of the holding company, they said in a joint statement Tuesday, confirming their original agreement announced two years ago. Hino will also issue shares and transfer its Hamura plant to Toyota for ¥150 billion ($1 billion).

"This means Hino and Fuso will come together on equal footing,” Karl Deppen, the CEO of Mitsubishi Fuso and of the new holding company, told reporters on Tuesday.