Shares in Hino Motors, the truck-making unit of Japanese auto giant Toyota, plunged Wednesday after it announced a merger with a subsidiary of Germany鈥檚 Daimler Truck.
The move is seen as an attempt to stay competitive at a time when global automakers are faced with US trade tariff uncertainty and new Chinese rivals.
The companies had said Tuesday that the integration of Hino and Daimler鈥檚 subsidiary Mitsubishi Fuso Truck and Bus would 鈥榚stablish a new strong Japanese truck powerhouse鈥�.
They said they aimed to complete the merger, on an equal footing under a listed holding company, by April 2026. Hino Motors shares were down more than 12 per cent in morning trade on Wednesday.
鈥楧aimler Truck and Toyota will each aim to own 25 per cent of the (listed) holding company of the integrated Mitsubishi Fuso and Hino,鈥� a joint statement said.
鈥楾he companies aim to improve business efficiency in areas such as development, procurement and production,鈥� it said.