Daimler Truck and Toyota Motor Corporation have signed an agreement to integrate Mitsubishi Fuso and Hino truck companies on an equal footing.

Daimler Truck is Fuso’s parent company, and Toyota is Hino’s parent company.

Both truck makers are present in South Africa, where they operate sales, service and assembly operations under their respective parent companies.

The overarching goal of the global merger is to “create a new, strong Japanese truck powerhouse to the benefit of all stakeholders”, say the companies in a statement.

“By integrating Mitsubishi Fuso and Hino Motors, the companies aim to improve business efficiency in areas such as development, procurement and production.

“With this, they expect to significantly enhance the competitiveness of Japanese commercial vehicle manufacturers and strengthen the foundation of the automotive industry in Japan and Asia.”

The new combined listed company will have more than 40 000 employees, and will start operations in April next year.

The CEO will be Karl Deppen, current Fuso CEO, and the company will be headquartered in Tokyo.

According to the agreement, Fuso and Hino will cooperate in the areas of commercial vehicle development, procurement and production.

The name of the new holding company will be announced over the coming months.

“Together, Mitsubishi Fuso and Hino Motors have great potential to leverage scale – and scale is key to win in the technological transformation of our industry,” says Daimler Truck CEO Karin Rådström.

“We believe that the future is for us to build together,” adds Toyota CEO Koji Sato.

“Today’s final agreement is not the goal, but the starting line. Our four companies, aiming to achieve a sustainable mobility society, will continue to create the future of commercial vehicles together.”

It is not yet known how the merger will affect the operations of Hino and Fuso/ Daimler in South Africa.

Daimler Truck Southern Africa tells Engineering News & Mining Weekly that it is unable to provide specific information regarding the local impact, as the integration process is still in its early stages.

Toyota South Africa Motors (TSAM) says that it looks forward to the opportunities brought about by the merger.

“This collaboration between four big brands will bring about improved business efficiencies, product development, procurement and production.

“While these opportunities will certainly benefit Hino dealers and customers in Southern Africa, these brands will continue to compete via separate distribution channels, with TSAM focusing on the distribution of Toyota, Lexus and Hino products.”