Presentation
Karl Deppen, New Holding Company CEO / President and CEO, Mitsubishi Fuso Truck and Bus Corporation
Dear Ladies and Gentlemen, Dear supporters and friends from the media, More than two years ago, the idea was born about a potential collaboration of Hino Motors and Mitsubishi Fuso that would transform the global automotive landscape as we know it.
The four companies took it forward, thanks to the shared belief that our industry will be undergoing severe changes that require action.
Today, this is more true than ever.
In the early phase of our discussions we shaped our shared project vision, which has defined our common beliefs and joint ambition.
We did this by considering the transformation of the industry and the investment needs into CASE technologies.It was a daunting challenge, but together we saw a way forward…
Today, we are here to announce that Daimler Truck, Toyota, Mitsubishi Fuso and Hino have officially concluded the Definitive Agreements to integrate Mitsubishi Fuso and Hino.
This means Hino and Fuso will come together on an equal footing to cooperate and develop commercial vehicles together, including eventually collaborating on procurement and production.
We aim for the new listed holding company to start operations in April next year.
The holding company will be listed on the prime market of the Tokyo Stock Exchange.
Toyota and Daimler Truck will each aim to own 25% of that company’s stock, with the rest of the shares available as free float.That holding company, which will own Mitsubishi Fuso and Hino, will be located right here in Tokyo.
Let’s take a look at the companies involved.
First, Hino Motors―Over thirty thousand employees.
Products produced and sold in 90 markets.
Hino Motors has been ‘making a better world and future by helping people and goods get where they need to go’ for more than 80 years now.
And Mitsubishi Fuso―Another 90 years of manufacturing prowess, sold in over 170 markets.
Creators of the Japan’s first mass-produced, all electric LDT, the eCanter.
With this, Toyota and Daimler Truck, two leaders of the automotive industry are committing to join forces. It is this courage and foresight to take the long view that has set both companies apart as leaders in their field.And it was this common view of imagining the future for an integrated Hino and Fuso which energized all of us to pursue the task.
Two years ago we signed the MoU and informed you about our aspirations.Since then, our industry has become even tougher.
Our Japanese customers have been struggling with the so called 2024 issue of driver shortages, and outside of Japan strong competition from new, large-volume competitors is fiercer than ever. At the same time, we all have to step up significant investments into the relevant future CASE technologies and carbon neutral mobility.
This is why in our industry scale matters, and this is why the Japanese market cannot support so many CV manufacturers, and this is why today is a great day.
It is a great day for…
Our customers,
Our dealers and distributors,
For our employees,
For our shareholders,
For our industry,
For society.
For our customers it is a great day because it will make our strong brands even stronger.
By combining engineering strength, competencies, and expertise, the new company will be able to even better support our customers in their transportation needs.
We will be ready to provide them with strong and efficient products, superior services and solutions, while being their go-to companion on migrating to zero emission solutions over the next years.Going forward, our integration means great things for commercial vehicles. With our combined expertise, passion and resources, this new company will offer new levels of quality, efficiency and technology to our customers.
It is a great day for our dealers and distributors because we appreciate and value the close cooperation with them and honor the longstanding relationships we have shared for decades.
This merger will help us to provide even better products in the future to make us successful together in our markets.
It is a great day for our employees as we are building a new company that is strong and healthy, and draws on even larger competence and knowledge.
We build a resilient business that has a bright future and provides great employment and development opportunities for our employees around the world.We’ll be a company that people are proud to work for, happy to be associated with.
It is a great day for our shareholders.
We are aspiring to capitalise on our combined strength and aspire to turn our market success into attractive total shareholder return.
And as a listed company we aim to be transparent in disclosure, trusted in performance, and reliable in our governance.
It is a great day for our industry. We need to accelerate the development of the CASE technologies.
The decarbonisation of transport is a key task for the industry and we will be an even stronger part of the solution.
And a strong manufacturer will be also good for our suppliers to grow and support our customers better with technologies and efficiencies.
As we accelerate our development of technology, we also increase our global competitiveness.
And, finally, it is a great day for society: modern societies need modern transportation, and we aim at continuously providing safe and clean on-road transportation.
And as much as we focus on our products and services, we also feel obliged to remain good corporate citizens in our neighbourhoods, no matter in Japan or internationally.
Ladies and gentlemen, Combining two strong companies under one joint enterprise is a complicated task.
What sounds like a logical move is, in reality, a complex transaction requiring tremendous efforts, hard work and enormous determination by everybody involved.
So while this is a special day for all of us, I would like to acknowledge and appreciate the incredible hard work of all the employees and teams in Hino, Toyota, Mitsubishi Fuso, and Daimler Truck. A big thank you goes to all of you!
To get here today took an incredible journey over the past two years, filled with deadlocks, difficulties and setbacks.
But even more so, it was a journey of motivation, shared ambitions and the strong desire to seize a huge opportunity for both Fuso and Hino.
I would also like to mention and appreciate the strong encouragement we have received from authorities and ministries to go ahead with our plans to strengthen our industry.
And on a personal note, I feel honored to have gained the trust of the major shareholders to lead this new company. From the beginning, I have been convinced that this cooperation is for the good of all our stakeholders. With this, we will make the Hino and Fuso brands even stronger. To build and lead this new company is for me a tremendous honour – and even more so, it is an obligation and motivation to make it a success.
And while acknowledging all the hard work necessary to get to this major milestone today, the real work will only start from now on!
So what’s going to happen next?
As I said earlier, we aim for the new listed holding company to start operations in April 2026.
Until then we have defined several milestones in between to make ourselves ready for it.
We will now immediately file for the anti-trust clearance here in Japan to get the approval to proceed with our plans. Same for many other countries we are doing business in.
We will select and fix the name of the new company.
We will conclude the agreements of governance and company structure.
We will announce the full management team and the board.
We will incorporate the new company to be ready to go live.
We will announce these details to the public in due time later in the year to keep you all informed.
So please stay tuned and connected and join us on this exciting journey.
I see this as an important opportunity for Fuso and Hino, and I’m pleased that my fellow CEOs see it the same way.
I’m sure you’d like to hear it from them directly, so let me now pass you to my main partner in this incredible journey, a man for whom I have the utmost respect―Hino Motors CEO, Ogiso San.
