Daimler and Toyota redraw Japan’s truck industry with factory exit
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Daimler Truck is pulling back from its long-standing manufacturing presence in Japan, selling its Mitsubishi Fuso factory in a move that clears the road for its merger with Toyota’s truck subsidiary, Hino. The decision marks a pivotal moment in Japan’s commercial vehicle sector as two of its legacy manufacturers push forward with a joint venture aimed at consolidating operations and navigating the shift to electrification.
Factory sale signals strategic shift
The sale of the plant, located in Kawasaki just south of Tokyo, reflects a shift in strategy as Daimler prepares to merge Mitsubishi Fuso with Hino. The factory will continue operating under new ownership, ensuring no immediate disruption to production. Daimler has stated that it will focus on realigning assets in Japan to streamline its contribution to the planned integration.
The merger between Daimler and Toyota’s truck unit, first announced in 2023, is designed to strengthen competitiveness against global peers and reduce the cost burden of developing zero-emission vehicles. Both Mitsubishi Fuso and Hino have struggled to keep pace with rivals in the U.S., Europe and China as the commercial vehicle sector pivots toward battery-electric and hydrogen-powered platforms.
Consolidation in a fragmented market
Japan’s truck market has traditionally been fragmented, with several mid-sized players operating independently. The new venture, which is still awaiting regulatory approval, would bring two of the largest names in the country’s truck manufacturing sector under one roof. Analysts expect this will provide both scale and cost-sharing opportunities in areas such as supply chain management, research and development and global distribution.
Industry experts point to the deal as a sign of deeper consolidation across the commercial vehicle market. Manufacturers worldwide face rising costs from emissions regulations, fuel-efficiency mandates and digital upgrades to fleet management. These factors are accelerating cooperation and restructuring, especially in countries with aging manufacturing assets and complex regulatory landscapes.
Preparing for a zero-emission future
While the plant sale signals Daimler’s physical pullback, it does not indicate a retreat from Japan entirely. The German manufacturer remains committed to the joint venture and is positioning its local operations for long-term integration with Hino’s infrastructure. Toyota, meanwhile, has made clear that the collaboration is central to its strategy of expanding in the medium- and heavy-duty truck space globally.
For stakeholders across the truck and logistics industries, the success of the Daimler-Hino merger could set a template for future alliances. It also raises questions about the future role of traditional manufacturing hubs in an era when mobility companies are increasingly focused on agility, technology and capital-light operations.
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