Toyota, Daimler sign truck merger deal

German manufacturer Daimler Truck Holding and Japanese car giant Toyota have signed a non-binding memorandum of understanding to merge their truck divisions, reported dpa.

Mitsubishi Fuso Truck and Bus Corp (MFTBC) - which is majority-owned by Daimler - and Toyota's Hino Motors truck division will be bundled under a holding company and the shares will be listed on the Tokyo Stock Exchange.

The new company will have access to Daimler's heavy duty truck technology.

The parties foresee signing of definitive agreements in the first quarter of 2024 and closing of the transaction by end of 2024.

Details of the transaction, the corporate structure, and the shareholder ratio will be decided later in legally binding definitive agreements.

The holding company will not be fully consolidated in Daimler Truck's financial statements.

"The risk associated with Hino's engine certification misconduct shall remain with Hino and will be taken into account when calculating the equity value of Hino and in form of certain mechanisms where the existing shareholders of MFTBC will be indemnified," Daimler said in a statement.