Hino Motors, a Toyota Motor group company, and Mitsubishi Fuso Truck and Bus, majority-owned by Daimler Truck, will seek to merge their operations in order to better compete in the market for freight-hauling vehicles.
The four manufacturers signed a memorandum of understanding to bring Hino and Mitsubishi Fuso under a single company to be jointly owned by Toyota and Daimler Truck, they said in a statement Tuesday. They plan to sign an agreement by March 2024 and integrate the business by the end of the same year.
Hino Motors has been caught up in an emissions scandal since last year after misrepresenting data on engine tests for years, making it a major headache for Toyota, which owns just over 50% of the truck- and bus-maker. The deal would potentially give Daimler Truck the ability to tackle their margin improvement targets more aggressively, given that Mitubishi Fuso’s earnings have been a drag on profitability.