Major Japanese truck makers Hino Motors Ltd. and Mitsubishi Fuso Truck and Bus Corp. said Tuesday they will merge under a holding company by the end of 2024 to speed up and cut costs of developing advanced safety and environmental technology.

The parents of Hino Motors and Mitsubishi Fuso -- Toyota Motor Corp. and Germany's Daimler Truck, respectively -- signed a basic agreement on integrating their subsidiaries, the two truck makers said.

Global automakers are ramping up investment in connected, autonomous, shared and electric vehicles, known as CASE, to meet stricter emission rules and offer new vehicle services.

It is becoming increasingly difficult for a commercial vehicle maker, which sells fewer vehicles than traditional automakers, to keep up with such a trend on their own, Hino said.

The trucking-making unit of Toyota suffered a record net loss in the fiscal year ended March 2023, stricken by an engine data falsification scandal. Hino booked a massive one-time loss to cover compensation to its customers and suppliers and recall costs.

Toyota and Daimler Truck will establish a holding company and aim to list the new entity.

==Kyodo

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