Hino Motors, a truck unit of Toyota Motor, alongside Daimler Truck subsidiary Mitsubishi Fuso Truck and Bus, have outlined plans to consolidate their production facilities in Japan.
The move is a preparatory step towards their planned merger and the formation of a new holding company, Archion.
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The consolidation process will reduce the number of domestic truck production sites from five to three, with operations focusing on the Kawasaki Plant in Kanagawa Prefecture, the Koga Plant in Ibaraki Prefecture, and the Nitta Plant in Gunma Prefecture.
As part of this restructuring, Mitsubishi Fuso will shutter its Nakatsu plant in Aikawa, and Hino will transition its Hamura plant in Tokyo to Toyota.
Joint investments in next-generation technologies are also on the agenda for Hino and Mitsubishi Fuso, with backing from Toyota and Daimler Truck, each securing a 25% stake in Archion.
The integration of operations under Archion is expected to be completed by April.
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By GlobalDataArchion’s leadership has been confirmed, with Karl Deppen of Mitsubishi Fuso set to take on the role of CEO.
Hetal Laligi will step in as CFO, and Satoshi Ogiso, currently president of Hino Motors, will become the chief technology officer.
Deppen said: “With the strong brands Fuso and Hino, we will provide superior products and solutions for our customers and their needs. Archion will implement an effective governance model to build trust by promoting transparency, compliance and improving financial performance.”
The merger is set to leverage Hino’s medium- and heavy-duty truck expertise with Mitsubishi Fuso’s focus on light-duty vehicles.
The aim is to create a synergy that will lead to more competitive products, cost-efficient operations, and quicker time-to-market for new launches.
The companies intend to reallocate savings from integration and improved efficiencies towards investments in the CASE domain (Connected/Autonomous & Automated/Shared/Electric).
Additionally, Archion plans to develop a range of products across all zero-emission vehicle (ZEV) segments, drawing on the technological prowess and scale of the Toyota and Daimler Truck network.
Ogiso commented: “By combining the strengths of all four companies, we will accelerate the development of CASE technologies and shape the future of commercial mobility. To achieve this, we will foster a corporate culture that values mutual learning and respects diversity.”
