Fuso and Hino to unite under new holding Archion

Daimler Truck and Toyota Motor Corporation first announced their intention to integrate Mitsubishi Fuso and Hino Motors as equal partners in May 2023, aiming to improve operational efficiency through close cooperation in development, procurement, logistics, and production. This approach also applies to the ongoing electrification of both manufacturers’ product ranges. In mid-2025, both sides signed a final agreement, and the partners are now releasing additional details.

The new holding company will be named Archion and is expected to own 100 per cent of the shares in Mitsubishi Fuso and Hino. Both brands will continue to operate as independent companies. Through the new parent company, the partners aim to ensure an equal partnership. Daimler Truck and Toyota each plan to hold 25 per cent of Archion. The holding is also expected to be listed on the Prime Market of the Tokyo Stock Exchange. Whether the remaining 50 per cent will be placed as free float through the IPO or taken up by another investor has yet to be confirmed.

Partners pursue coordinated platform strategy

Archion will begin business operations in April 2026, aligning with Japan’s fiscal year, which runs from 1 April to 31 March. Both parties describe one of the merger’s core goals as an “integrated platform strategy as the main initiative to enhance competitiveness, leveraging the strengths of both companies to build highly competitive product portfolios under each brand.” The companies intend to explore how to use their platforms for heavy, medium, and light commercial vehicles in a synergistic way, without blurring each brand’s identity – as both will continue to compete in the marketplace.

The partners also plan to integrate and streamline their development, procurement, production, and logistics divisions. “Consolidating development functions allows the reduction of duplicate investments and enables timely integration of product platforms, building a foundation to support future innovation,” Daimler Truck explained. Pooling purchasing power will also enable significant cost savings across numerous direct and indirect procurement areas.

Cost savings are also at the centre of plans to reduce overlapping structures created by the merger. Archion intends to consolidate “indirect functions” and focus production at fewer sites. By the end of 2028, the five Japanese truck production plants will be consolidated into three sites: the Kawasaki plant (Kawasaki City, Kanagawa Prefecture), the Koga plant (Koga City, Ibaraki Prefecture), and the Nitta plant (Ota City, Gunma Prefecture). Hino’s Hamura plant will be transferred to Toyota Motor Corporation, while Mitsubishi Fuso’s Nakatsu plant will be integrated into the Kawasaki facility.

Focus on CASE technologies

Another stated objective is for the holding to contribute contribute to advancing solutions in areas such as CO₂ neutrality and logistics efficiency in commercial vehicles. The focus will be on developing CASE technologies – Connected, Autonomous, Shared, Electric – with hydrogen explicitly mentioned alongside the goal of delivering “market-leading products across all ZEV segments.”

Mitsubishi Fuso already offers the eCanter, a small battery-electric truck, and is part of a Japanese consortium testing battery-swapping solutions for such vehicles. Hino, meanwhile, is developing both battery-electric and fuel-cell drivetrains for markets from North America to Asia. In Japan, hydrogen plays a significant political role, and Toyota is regarded as a pioneer in fuel-cell technology.

Karl Deppen to become CEO of the holding

In addition to outlining the new company’s direction, the partners also announced key leadership appointments. It was already known that long-time Daimler Truck executive and current Fuso CEO Karl Deppen will lead the new company as CEO. Newly confirmed is the creation of a CTO position to define the group’s technology roadmap and implement synergies. This role will be filled by Satoshi Ogiso, currently CEO of Hino Motors, who will also serve as Executive Director. Hetal Laligi, presently CFO of Mitsubishi Fuso, will take on the role of Chief Financial Officer and Representative Director. Christian Herrmann and Kiyotaka Ise will join the holding as Non-Executive Directors.

“Today we take the next step to bring our shared vision to life: With Archion, we aim to ‘deliver the future of commercial mobility’ for the benefit of our customers and all stakeholders,” Karl Deppen, designated CEO of Archion, commented. “With the strong brands FUSO and Hino, we will provide superior products and solutions for our customers and their needs. ARCHION will implement an effective governance model to build trust by promoting transparency, compliance and improving financial performance.”

Incoming CFO Hetal Laligi added: “Our financial ambition for the new Group is rooted in a clear strategy: unlocking the full potential of this integration by realizing synergies and growth opportunities, while continuously working to improve the standalone performance of both companies. We aim to elevate financial resilience and performance to peer benchmark level. Capital allocation in line with this strategy will enable sustainable value creation.”

daimlertruck.com, mitsubishi-fuso.com (PDF)

This article was first published by Cora Werwitzke for electrive’s German edition.