Hino, Mitsubishi Fuso to Finalize Merger Agreement

Tokyo, April 22 (Jiji Press)--Hino Motors Ltd. and Mitsubishi Fuso Truck and Bus Corp. have begun coordination to conclude a final agreement on their management integration, it was learned Tuesday.

Toyota Motor Corp. and Germany's Daimler Truck AG, the parents of Hino and Mitsubishi Fuso, respectively, will establish a holding company that will own the units.

The two sides aim to sign the final agreement as early as May after completing procedures with relevant authorities.

The envisaged merger will realign Japan's commercial vehicle industry into the Hino-Mitsubishi Fuso coalition and the bloc made up of Isuzu Motors Ltd. and its subsidiary UD Trucks Corp.

The industry is facing the need for structural reform to promote vehicle electrification and autonomous driving, while the management environment is becoming increasingly severe, partly due to U.S. President Donald Trump's tariff policy.

In May 2023, Hino and Mitsubishi Fuso forged a basic agreement on their management integration, with the aim of completing the transaction in 2024.

In February 2024, however, the two sides announced that the merger would be delayed due to a string of lawsuits, mainly in the United States, over Hino's data falsification scandal.

In January this year, Hino reached a settlement with U.S. authorities to pay a hefty fine over the engine testing scandal. To cover the settlement costs, the automaker booked 258.4 billion yen in extraordinary losses.

Following the development, Hino indicated its intention to accelerate merger discussions again.
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