Daimler, Toyota Join Forces - InvestingChannel

Daimler, Toyota Join Forces

Daimler Truck Holding and Toyota Motor Corp (NYSE:TM) said on Tuesday they had entered a non-binding agreement to combine the businesses of their truck units in Japan.

Under the memorandum of understanding, the businesses of Daimler-owned Mitsubishi Fuso Truck and Bus Corp and Toyota subsidiary Hino Motors Ltd would be combined under a holding company, they said in a statement.

The shares of the new company are expected to be listed on the Prime Market of the Tokyo Stock Exchange.

Daimler Truck and Toyota will invest in the company equally and cooperate on the development of hydrogen and other technologies in areas such as connectivity and autonomous driving, the statement said.
As part of the arrangement, Daimler Truck and Toyota plan to cooperate in reducing carbon emissions and developing other technologies such as autonomous driving, net-connected services and electric vehicles.

“This collaboration among our four companies is a partnership for creating the future of commercial vehicles in Japan and the future of a ‘mobility society,’ said Toyota Motor Corp. Chief Executive Koji Sato.

Further details of the merger, including shareholding ratios, the company name and its structure will be worked out over the next 18 months, the companies said. They aim to sign a definitive agreement by early next year and close the transaction by the end of 2024. The deal still needs shareholders’ and regulatory approval.

The companies expect to sign a definitive agreement in the first quarter of 2024 and close the transaction by the end of next year, they said.

Last year, a committee tasked with investigating an emissions scandal at Hino, which became a Toyota subsidiary in 2001, found that the truck and bus maker had falsified emissions data going back to 2003.

TM shares lost $1.38, or 1%, to $138.69.

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