Daimler Truck completes integration of its subsidiary Mitsubishi Fuso into new ARCHION Corporation

Leinfelden-Echterdingen- Daimler Truck Holding AG., has officially completed the integration of Mitsubishi Fuso Truck and Bus Corporation into the newly established holding company ARCHION Corporation, marking a major restructuring move in the Asian commercial vehicle industry. ARCHION was listed on the Tokyo Stock Exchange Prime Market on April 1, 2026, and has now begun operations as the new holding company for both Mitsubishi Fuso and Hino Motors, the latter being a subsidiary of Toyota Motor Corporation. ARCHION now owns 100% of both companies, while Daimler Truck and Toyota are each expected to retain around a 25% stake and continue as long-term strategic shareholders.

The new group has been formed with the ambition of becoming a leading commercial vehicle company in Asia by combining the long-established strengths of Mitsubishi Fuso and Hino. ARCHION begins with a structure designed to integrate key business areas such as development, procurement, production, and logistics. Karl Deppen has assumed the role of President and CEO of ARCHION, stepping down from his position on Daimler Truck’s Board of Management effective March 31, 2026.

Ms. Karin Rådström, President and CEO of Daimler Truck, described the merger as a major milestone for Asia’s commercial vehicle industry. She said the creation of ARCHION brings together two of Japan’s most respected commercial vehicle brands and positions the new company to benefit from greater scale, deeper synergies, and future regional growth opportunities. She also expressed confidence in the new leadership team under Karl Deppen, highlighting his broad international experience, industry expertise, and long track record across Asian markets.

For Daimler Truck, the move represents an important strategic step in unlocking long-term value while sharpening its focus on heavy-duty commercial vehicles. Through ARCHION, Daimler Truck and its partners are creating a more efficient structure that allows both Hino and Mitsubishi Fuso to align core functions more closely and reduce operational overlap. The new company is expected to benefit from the strong production and sales networks developed by both brands over the years, while also drawing on collaboration with Daimler Truck and Toyota to improve efficiency in development, sourcing, and manufacturing.

ARCHION is also expected to accelerate cooperation in advanced future technologies, including fuel cells and autonomous driving, by combining the technological strengths of both brands. This is seen as a key part of generating long-term synergies and improving competitiveness in the evolving commercial vehicle market.

From a financial perspective, the closing of the transaction means Mitsubishi Fuso will no longer be consolidated within Daimler Truck’s accounts. Instead, Daimler Truck’s investment in ARCHION will now be accounted for using the equity method. The related earnings effects will be classified under discontinued operations, while cash flows received by Daimler Truck will be reported under continuing operations and are expected to positively support the free cash flow of its industrial business.

Daimler Truck expects the transaction to generate total cash inflows of between €1.5 billion and €2.0 billion and plans to reduce its shareholding in ARCHION to around 25%. Over time, the company also expects the free float of ARCHION to rise above 35%, which is considered an important condition for maintaining its Prime Market listing in Japan.

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