Toyota Motor Corp. and Daimler Truck Holding AG announced that they had reached a non-binding agreement to consolidate the truck units' businesses in Japan.
As per the memorandum of understanding (MOU), a holding company would be formed by combining the operations of Toyota subsidiary Hino Motors Ltd. and Daimler-owned Mitsubishi Fuso Truck and Bus Corp.
The shares of the new business are anticipated to be placed on the Tokyo Stock Exchange's Prime Market.
Daimler Truck and Toyota will each make an equal investment in the business and work together to develop hydrogen and other technologies related to connection and autonomous driving according to sources.
Based on the companies, a definitive agreement will be signed in the first quarter of 2024, and the deal will be completed by the end of the following year.
A committee entrusted with looking into an emissions issue at Hino, which changed its name to a Toyota affiliate in 2001, discovered last year that the truck and bus manufacturer had fabricated emissions data going as far back as 2003.
At 4:30 pm, the CEOs of the four corporations will address the media jointly in Tokyo.
Toyota Motor Corporation is a global Japanese automaker with its main offices in Toyota City, Aichi, Japan. Kiichiro Toyoda established it, and it became a corporation on August 28, 1937. One of the biggest automakers in the world, Toyota produces around 10 million automobiles annually.