Daimler Truck, Mitsubishi Fuso Truck and Bus Corporation (MFTBC), Hino Motors and Toyota Motor Corporation (TMC) have concluded a memorandum of understanding (MoU) on accelerating the development of advanced technologies, as well as on merging MFTBC and Hino.

MFTBC is part of the Daimler group and Hino a member of the Toyota group. Both are Japanese truck brands.

Daimler Truck, MFTBC, Hino and Toyota say they will collaborate towards achieving carbon neutrality by jointly developing hydrogen and other connected, autonomous, shared and electric technologies.

The vehicle manufacturers also note that MFTBC and Hino will merge on an equal footing and that they will collaborate in the areas of commercial vehicle development, procurement and production in order to build a globally competitive Japanese commercial vehicle manufacturer.

Daimler Truck and Toyota are set to invest equally in the listed holding company of the merged MFTBC and Hino groups.

“By joining forces, MFTBC and Hino will create synergies and enhance the competitiveness of Japanese truck manufacturers, helping to strengthen the foundation of the Japanese and Asian automotive industries, and contributing to their customers, stakeholders and society,” note the groups in a statement.

“There is a great future ahead, and today’s announcement is a crucial step in making that future work economically, and in leading sustainable transportation,” says Daimler Truck CEO Martin Daum.

“The planned new company will be a major force in South-East Asia and an important associate of the Daimler Truck family.”

“This collaboration among our four companies is a partnership for creating the future of commercial vehicles in Japan and is the future of a mobility society,” says TMC CEO Koji Sato.

Details on the scope and nature of the collaboration, including the name, location, shareholding ratio and corporate structure of the new holding company, will be decided over the next 18 months.

The parties envisage signing definitive agreements in the first quarter of next year, with the aim to close the transaction by the end of 2024.

It is not immediately clear how the merger will affect Fuso’s and Hino’s operations in South Africa.

Hino operates out of the Toyota stable, in Durban, with Fuso part of the Daimler group, in Pretoria.

Hino trucks are assembled in Durban and Fuso trucks in East London.