Hino Motors and Mitsubishi Fuso Truck and Bus detailed their plan to merge into a new holding company called ARCHION Corporation, setting an April 2026 launch date for a combination aimed at salvaging competitiveness in Japan’s struggling commercial vehicle sector.
The tie-up between the Toyota-backed and Daimler Truck-owned manufacturers comes as Hino grapples with the fallout from a US emissions fraud case that resulted in a $1.6 billion settlement earlier this year. The company admitted to falsifying emissions data on over 105,000 diesel engines sold between 2010 and 2022, leading to criminal penalties and a five-year ban on US diesel engine imports.
Hino posted a net loss of ¥217.8 billion ($1.46 billion) for the fiscal year ended March 2025, while Mitsubishi Fuso earned ¥28.5 billion on significantly lower revenue. The companies said they will cut Japan’s domestic truck manufacturing sites from five to three by late 2028, consolidating operations at plants in Kawasaki, Koga and Nitta.
Karl Deppen, currently president of Mitsubishi Fuso, will lead ARCHION as chief executive officer, with Hetal Laligi as finance chief. Hino CEO Satoshi Ogiso moves to a technology role. Toyota and Daimler Truck each plan to hold 25% stakes in the listed entity.
The document acknowledged that Hino’s legal troubles pose risks to completing the transaction, noting settlement costs could trigger indemnification obligations to Mitsubishi Fuso’s shareholders. The companies said they will maintain separate FUSO and HINO brands while combining development and procurement operations.
