Daimler Truck and Toyota have signed an MOU on the development of advanced technologies, which will see the merger of Mitsubishi Fuso and Hino Motors.

The MOU will see Daimler Truck, Fuso, Hino, and Toyota collaborate toward achieving carbon neutrality and developing CASE (Connected / Autonomous & Automated / Shared / Electric) technologies, as well as strengthening the commercial vehicle business on a global scale.

Under the deal, Fuso and Hino will be merged “on equal footing” and collaborate in the areas of commercial vehicle development, procurement and production. They will build a globally competitive Japanese commercial vehicle manufacturer.

Daimler Truck and Toyota will equally invest in the holding company of the merged MFTBC and Hino. They will collaborate on the development of hydrogen and other CASE technologies to support the competitiveness of the new company.

By joining forces, MFTBC and Hino would 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.

Signing of definitive agreements is expected in the first quarter of 2024 with the aim of closing the transaction by end of 2024.

“We at Daimler Truck are very proud of our products, because trucks and buses keep the world moving. And soon they will even do so with zero emissions,” said Martin Daum, CEO of Daimler Truck.

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

Karl Deppen, CEO of MFTBC, added: “This close collaboration will enable us to accelerate the decarbonisation of the transportation industry, creating an even stronger Japanese commercial vehicle manufacturer.

“Under the two well-established brands of FUSO and Hino, we will continue to take a leading role in serving customer needs in Japan, Asia and beyond.”

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 course of the next 18 months.