The battery-electric commercial vehicle market is undergoing further consolidation as Daimler Truck and Toyota Motor Corporation announce the formation of a new holding company, ARCHION, to merge their Japanese truck affiliates Mitsubishi Fuso and Hino Motors brands.
The name ARCHION—combining "arch" and "eon"—symbolizes a "bridge to the future" and reflects the companies' commitment to long-term collaboration. The new entity is set to launch on April 1, 2026, pending regulatory approval in Japan and other markets.
Regulatory reviews are expected to last into early 2026, with final approvals needed before ARCHION begins operations. Fuso and Hino have committed to collaborating closely with suppliers and customers to ensure a smooth transition.
Market consolidation
Mitsubishi Fuso and Hino both have a presence in North America, so this deal is expected to impact the market.
[Related: Hino reaches $236 million settlement with CARB]
Under the merger agreement, Daimler Truck and Toyota will each own a 25% stake in ARCHION, while the remaining shares will be publicly traded on the Tokyo Stock Exchange. The new holding company will take full ownership of both Fuso and Hino, managing their combined manufacturing, product development, and procurement operations.
Karl Deppen, currently leading Mitsubishi Fuso, will become ARCHION CEO. This merger unites over 40,000 employees from both companies and will align their efforts in electrification, hydrogen powertrains, and autonomous driving technologies. The companies intend to combined their operations in Japan while maintaining both the Fuso and Hino brands. Some restructuring is likely, including possible plant consolidation. Specific details have yet to be revealed. Daimler Truck, however, has indicated that Fuso's Nakatsu plant may be sold or repurposed following the merger.
Toyota and Daimler Truck further confirmed that ARCHION will support joint investment in battery-electric and fuel-cell truck platforms, along with the collaborative development of connected and autonomous technologies. Hino President Satoshi Ogiso called the new structure "a fresh start for Japanese truck manufacturing." Like many manufacturers, Fuso and Hino were facing greater competition not only from China but also the U.S.
Jay Traugott has covered the automotive and transportation sector for over a decade and now serves as Senior Editor for Clean Trucking. He holds a drifting license and has driven on some of the world's best race tracks, including the Nurburgring and Spa. He lives near Boulder, Colorado and spends his free time snowboarding and backcountry hiking. He can be reached at [email protected].
