It will put together the resources of Mitsubishi Fuso, Toyota, Hino and Daimler – in a move similar to the amalgamation of Volkswagen’s subsidiary truck and bus groups that formed Traton.
It is intended to create organisational efficiencies but also aims to revitalise Hino that has been hit by three consecutive years of losses attributed to reports it faked data on emission and fuel economy tests.
In Australia, Hino Australia vice president of brand and franchise development, Richard Emery, said: “This is an exciting announcement for both Hino and Fuso at a local level, and also internationally.
“We will be in a position to share more information about this towards the end of next year.”
A new holding company is planned to be listed on the prime market of the Tokyo stock exchange. Toyota and Daimler will have equal shares in the new company.
(L-R): Satoshi Ogiso (CEO, Hino), Koji Sato (CEO, Toyota), Martin Daum (CEO, Daimler Truck) and Karl Deppen (CEO, Mitsubishi Fuso)
Hino Motors’ CEO Satoshi Ogiso said in a news conference that the grouping of the four truck makers and the creation of a single holding entity was “a once in a lifetime chance”.
In 2022, Hino admitted it had falsified emissions data going back to 2003. The Nikkei Asia newspaper said Japanese authorities conducted on-site investigations, leading to the company suspending domestic shipments of trucks and buses.
“The consequences of the scandal have mounted,” Nikkei Asia reported.
“Hino’s group net loss for the year ended March 2023 widened to 117.6 billion yen ($A1.27b), its largest ever.
“Earlier this year, the company dissolved the strategic partnership it formed in 2018 with Volkswagen truck unit Traton.”
Toyota Motor CEO Koji Sato said in a report by the newspaper that his company “can only do so much for Hino.”
“By borrowing strengths that we do not have from Daimler and Mitsubishi Fuso, we will create a better Hino,” Mr Sato said at the news conference.
“Despite our best efforts to create a better relationship, to be honest, there are limits to what we can do to support Hino.”Nikkei Asia said that for Mitsubishi Fuso, the tie-up with Hino holds potential strategic benefits in Southeast Asia, an important market for both companies.CEO Karl Deppen indicated a desire to work together in markets beyond Japan, such as on carbon-neutral efforts in Southeast Asia.
The four manufacturers already share strong links. Daimler Trucks, which split from Mercedes-Benz in 2021, owns 89.29 per cent of Mitsubishi Fuso. Mitsubishi owns 10.71 per cent of Fuso. Hino is a 100 per cent subsidiary of Toyota.
Daimler Truck had a 55 per cent increase in adjusted earnings before interest and taxes (EBIT) to 3.95 billion euros ($A6.4b) for 2022, but profit in its Asian business including Mitsubishi Fuso decreased 60 per cent to 171 million euros ($A277m).
Profit margins in Asia are slimmer than those in many other markets, with Asian profits in the 2 per cent range compared with 11 per cent in North America.
Daimler Truck CEO Martin Daum said at the news conference that the truck and bus division must adapt to decarbonisation in order to grow, and that the only solution is greater scale.
The tie-up also will give Daimler Truck access to Toyota’s fuel-cell vehicle technology.
Hydrogen-powered fuel cells are seen as a better choice for electrifying long-distance trucks than trucks laden with heavy electric-vehicle batteries.
The four – which are in the Top 10 global truck makers – said at a signing ceremony that the collaboration would aim to achieve carbon neutrality and create “a prosperous mobility society by developing CASE technologies (Connected / Autonomous And Automated / Shared / Electric) and strengthening the commercial vehicle business on a global scale.”
They said 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.
By Neil Dowling
Read More: Related articles
