Daimler Truck’s Fuso and Hino Provide Integration Updates

Daimler Truck’s Fuso and Hino Move Forward with Integration as “ARCHION,” Unveiling Strategic Synergies and Leadership Structure

Mitsubishi Fuso Truck and Bus Corporation and Hino Motors Ltd. have taken a significant step forward in their integration plans by unveiling the name of their new holding company — ARCHION Corporation. This entity is set to commence operations on April 1, 2026, following the final integration agreement reached on June 10, 2025, between parent companies Daimler Truck AG and Toyota Motor Corporation.

Meaning and Vision Behind the Name ARCHION

The name ARCHION symbolizes the essence of “arches,” representing the bridge and connection between companies, stakeholders, and the broader transportation ecosystem. The suffix “eons” alludes to the concept of longevity and a vision extending into the future — a future where mobility continues to transform lives for generations. Together, these elements form ARCHION, embodying the collaborative ambition of Daimler Truck, Toyota, Mitsubishi Fuso, and Hino to deliver “the future of commercial mobility.”

This shared vision reflects a strong commitment to social and environmental progress through innovation, safety, and sustainability in the commercial vehicle sector. As a combined entity, the ARCHION Group—comprising the holding company and its two core operating firms, Mitsubishi Fuso and Hino—aims to enhance efficiency, drive competitiveness, and elevate the value of mobility to society at large.

Strategic Synergy Initiatives

ARCHION’s roadmap includes three key pillars of integration: platform synergy, operational efficiency, and technology-driven transformation.

1. Integrated Platform Strategy

At the heart of ARCHION’s integration is an “Integrated Platform Strategy,” designed to combine the best of both Fuso and Hino’s engineering capabilities. The two companies will harmonize their product platforms—across heavy-duty, medium-duty, and light-duty vehicle segments—to improve cost structures, speed up product development cycles, and offer a more comprehensive lineup to customers.

By leveraging shared platforms while maintaining distinct brand identities, ARCHION aims to create a balanced synergy—preserving the strengths and reputations of both Fuso and Hino, while jointly producing vehicles that deliver enhanced performance, efficiency, and value.

2. Enhancing Efficiency and Competitiveness

To unlock greater economies of scale, ARCHION will streamline its development, procurement, production, and logistics functions. This consolidation will minimize duplicate investments and optimize resource allocation, allowing for a more agile and cost-efficient structure.

Procurement synergies, in particular, will enable substantial cost reductions through bulk purchasing of both direct and indirect materials. By combining purchasing power, the new group expects to improve price competitiveness and strengthen supplier relationships.

ARCHION also plans a major consolidation of production sites to further drive efficiency and improve quality. By 2028, five domestic truck manufacturing facilities in Japan will be reorganized into three strategic hubs:

  • Kawasaki Plant (Kawasaki City, Kanagawa Prefecture)
  • Koga Plant (Koga City, Ibaraki Prefecture)
  • Nitta Plant (Ota City, Gunma Prefecture)

As part of this plan, Hino’s Hamura Plant will be transferred to Toyota, while operations from Mitsubishi Fuso’s Nakatsu Plant will be integrated into the Kawasaki facility.

In addition to manufacturing consolidation, indirect functions will gradually be integrated to reduce administrative overlap and achieve operational excellence.

3. Growth Through CASE Technologies

The ARCHION Group plans to reinvest the efficiencies gained from integration into the CASE domains—Connected, Autonomous, Shared, and Electric mobility. This approach underscores the company’s ambition to be a leader in next-generation commercial vehicle technologies.

ARCHION will leverage the global technological networks of Toyota and Daimler Truck to accelerate product innovation, particularly in the zero-emission vehicle (ZEV) space.

In hydrogen mobility, ARCHION will harness Toyota and Daimler Truck’s expertise in fuel cell systems to lead global development in this field. Autonomous driving and connected mobility will also be major investment areas, with data-driven solutions designed to enhance fleet efficiency, predictive maintenance, and customer satisfaction.

By advancing these initiatives, Fuso and Hino will maintain their competitive spirit while enhancing their brand value through healthy market competition. This balance of collaboration and competition aims to deliver high-quality, sustainable solutions that meet evolving customer and societal needs.

Leadership and Governance Framework

To guide the new entity into its next phase, ARCHION has announced several key leadership appointments:

  • Karl Deppen — Representative Director & CEO (also President & CEO of Mitsubishi Fuso Truck & Bus Corporation)
  • Hetal Laligi — Representative Director & CFO (also CFO of Mitsubishi Fuso Truck & Bus Corporation)
  • Satoshi Ogiso — Executive Director & CTO (also CEO of Hino Motors Ltd.)
  • Christian Herrmann — Non-Executive Director (Vice President and Head of Corporate Development, Daimler Truck AG)
  • Kiyotaka Ise — Non-Executive Director (Outside Director, Sumitomo Riko Company Ltd.)

The holding company will be headquartered in Shinagawa, Tokyo, and officially established on June 2, 2025. Operations will begin on April 1, 2026, pending necessary regulatory and shareholder approvals.

Daimler Truck and Toyota each plan to hold 25% ownership stakes in ARCHION, with the company targeting a future listing on the Tokyo Stock Exchange Prime Market. ARCHION will fully own both Mitsubishi Fuso and Hino Motors.

Executive Insights on ARCHION’s Future

Karl Deppen, designated CEO of ARCHION, emphasized that the new company represents “the next step in bringing our shared vision to life.” He added,

“With ARCHION, we aim to deliver the future of commercial mobility for the benefit of customers and all stakeholders. By uniting the strengths of FUSO and Hino, we will deliver superior products and solutions built on trust, transparency, and performance.”

Hetal Laligi, the designated CFO, highlighted the financial strategy underpinning the integration:

“Our goal is to unlock the full potential of this merger through synergy realization and sustained growth, while maintaining strong standalone performance. With disciplined capital allocation, ARCHION will pursue sustainable value creation and elevate financial resilience to benchmark standards.”

Meanwhile, Satoshi Ogiso, the future CTO, reaffirmed the customer-centric approach that will guide ARCHION’s innovation agenda:

“Customers remain at the core of everything we do. By merging the strengths of Toyota, Daimler Truck, Hino, and Mitsubishi Fuso, we can accelerate the development of CASE technologies and shape the future of mobility. This partnership thrives on mutual learning and respect for diversity.”

Source link

Newsletter Updates

Enter your email address below and subscribe to our newsletter