The two parent corporations, Daimler Truck AG and Toyota Motor Corporation, have announced the next phase of their joint commercial vehicle venture. Their respective subsidiaries, Mitsubishi Fuso Truck and Bus Corporation (Mitsubishi Fuso) and Hino Motors Ltd. (Hino), will be merged under a new holding company called Archion Corporation.
Operations are due to commence on 1 April 2026, following the final merger agreement signed on 10 June 2025. The new company will be headquartered in Tokyo’s Shinagawa district and aims to be listed on the Prime Market of the Tokyo Stock Exchange.
Daimler Truck and Toyota will each hold 25% of Archion’s shares, with the remaining 50% to be allocated to institutional investors. Archion will in turn hold 100% of the shares in both Mitsubishi Fuso and Hino Motors.
The name Archion combines “Arches” – symbolising connection – and “Eons”, which represents long-term partnership and sustainability.
Integrated platform strategy and factory consolidation
At the core of the merger is an integrated platform strategy, through which Mitsubishi Fuso and Hino plan to share vehicle platforms across light-, medium- and heavy-duty commercial vehicles. The objective is to shorten development times, achieve economies of scale, and expand the product portfolio efficiently – while maintaining the independence of both brands.
The new structure also foresees closer coordination in research and development, procurement, production, and logistics. Joint development activities are expected to eliminate duplication and make investment more efficient. Both companies also anticipate notable cost savings in purchasing and manufacturing.
A key element is the consolidation of truck production sites in Japan. By the end of 2028, the current five plants will be reduced to three:
- the Kawasaki plant (Kanagawa Prefecture),
- the Koga plant (Ibaraki Prefecture), and
- the Nitta plant (Gunma Prefecture).
Hino’s Hamura plant will be transferred to Toyota, while Fuso’s Nakatsu plant will be integrated into Kawasaki. This consolidation aims to cut fixed costs, optimise capacity utilisation, and shorten delivery times.
Focus on CASE technologies and hydrogen
With resources freed up, Mitsubishi Fuso and Hino intend to ramp up investment in future technologies. The new Archion Group plans to direct funds towards the so-called CASE areas – Connected, Autonomous, Shared, and Electric.
Particular emphasis will be placed on hydrogen fuel cell technology, an area in which Toyota and Daimler Truck are already collaborating. Both partners aim to accelerate the development of zero-emission drivetrains and launch new series-production models across all commercial vehicle segments – from light distribution trucks to heavy long-haul vehicles.
In the field of connected fleet solutions, Fuso and Hino also plan to integrate data and systems more closely to offer customers comprehensive digital services.
Independent brands with a shared goal
Despite the integration, Mitsubishi Fuso and Hino Motors will continue to operate as independent brands. The companies say this will foster “healthy competition” within the group, strengthening both quality and innovation.
“Today we are taking the next step towards making our shared vision a reality. With Archion, we aim to shape the future of commercial mobility – for the benefit of our customers and all stakeholders,” said Karl Deppen, designated CEO of Archion Corporation and current President of Mitsubishi Fuso.
Hetal Laligi, designated CFO, added:
“We want to harness the full potential of this integration by leveraging synergies and growth opportunities while strengthening financial resilience and achieving benchmark performance within our industry.”
Satoshi Ogiso, current CEO of Hino Motors and future CTO of Archion, highlighted the technological ambitions:
“By combining the strengths of all four companies, we will significantly accelerate the development of CASE technologies and actively shape the future of commercial mobility.”
Relevance for the European market
For Daimler Truck, the integration is also strategically significant. Archion will reinforce the group’s presence in Asia, create global platforms, and enhance competitiveness in the international truck market – particularly in the fields of electromobility and autonomous driving.
For Europe, this could mean standardised vehicle architectures, greater economies of scale, and shorter development cycles – potentially translating into synergies for the Fuso range, which enjoys strong demand in the region.
The establishment of Archion remains subject to approval by supervisory boards and competition authorities, but the process is expected to be completed by spring 2026.
