Toyota and Daimler to merge truck subsidiaries
TOKYO: 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's 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's subsidiary Mitsubishi Fuso Truck and Bus would "establish a new strong Japanese truck powerhouse."
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 percent in morning trade on Wednesday.
"Daimler Truck and Toyota will each aim to own 25 percent of the (listed) holding company of the integrated Mitsubishi Fuso and Hino," a joint statement said.
"The companies aim to improve business efficiency in areas such as development, procurement and production," it said.
"They expect to significantly enhance the competitiveness of Japanese commercial vehicle manufacturers and strengthen the foundation of the automotive industry in Japan and Asia."
The new company will work to develop models using new fuels and technologies, from electric trucks and hydrogen-powered trucks to autonomous driving systems.
Analysts say Japanese firms have lost ground in the EV market in recent years by focusing more on hybrid vehicles, industry analysts say.
China's highly competitive EV market is the largest in the world, led by Shenzhen-based carmaker BYD, which is accelerating its overseas expansion.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
25 minutes ago
- Borneo Post
China says approved 'certain number' of rare-earth export licences
A photo taken in 2012 shows a rare earth refinery near Baotou, China. – AFP photo BEIJING (June 12): China said today it had issued a 'certain number' of licences to export rare earths after US President Donald Trump hailed this week's deal that would see the country provide the vital elements 'up front'. The economic superpowers said after talks in London that they had achieved progress in dialling down a brutal trade war that has roiled markets and threatened global supply chain chaos. A top priority for Washington has been ensuring supply of the rare earths essential for products including electric vehicles, hard drives and national defence equipment. China — which dominates global production of the elements — began requiring export licences in early April, a move widely viewed as a response to blistering tariffs imposed by Trump. The US president said Wednesday on social media that 'full magnets, and any necessary rare earths, will be supplied, up front, by China' as part of the deal, which was now 'done' — pending final approval by him and Chinese counterpart Xi Jinping. The commerce ministry in Beijing said today that 'China, as a responsible major country, fully takes into account the legitimate needs and concerns of all countries in the civilian sector' related to rare earths. 'It reviews export licence applications for rare earth-related items in accordance with laws and regulations,' spokesman He Yadong told a news conference, adding that a 'certain number of compliant applications have already been approved'. However, he declined to provide a specific number when asked how many licences had been approved by Beijing since talks between the two sides in Switzerland last month. 'We will continue to strengthen the approval process for compliant applications,' He added. – AFP China donald trump rare earth trade war us
New Straits Times
an hour ago
- New Straits Times
Japan's Kewpie celebrates 100 years with slew of initiatives in Malaysia
KUALA LUMPUR: Kewpie Malaysia Sdn Bhd marks the 100th anniversary of Kewpie mayonnaise with a series of nationwide initiatives. This includes a consumer contest, culinary collaborations and educational partnerships aimed at celebrating the brand's legacy and fostering local talent. Founded in Japan in 1925 by Toichiro Nakashima, Kewpie mayonnaise has become known for its signature creamy texture and umami flavour. In Malaysia, where Kewpie has operated since 2009, the brand has established a strong presence with halal-certified products tailored to local tastes. It launched the "Kewpie 100th Years Mayonnaise Contest," encouraging Malaysians to create original dishes using Kewpie Mayonnaise Japanese style. The contest is part of Kewpie's global campaign which includes a food truck tour across Japan, exclusive merchandise and interactive experiences at the Mayo Terrace museum in Tokyo. In Malaysia, Kewpie is partnering with Fei Fei Crab Restaurant to offer a special menu of dishes incorporating Kewpie mayonnaise, blending Japanese and Malaysian culinary influences. Kewpie is also extending its efforts to the education sector through its collaboration with SEGi University. The partnership provides students with real-world experience in the food industry, promoting innovation and skill development using Kewpie products. "We are honoured to celebrate 100 years of Kewpie Mayonnaise with our partners and community in Malaysia," said Shimpei Okada, deputy managing director of Kewpie Malaysia. "This milestone not only reflects our heritage but also reaffirms our commitment to inspiring the next generation of food innovators."
Daily Express
2 hours ago
- Daily Express
Now's as good a time as any to buy China-made cars
Published on: Thursday, June 12, 2025 Published on: Thu, Jun 12, 2025 By: Yamin Vong, FMT Text Size: BYD, for instance, has emerged as a leader in EVs and is iconic for its integrated supply chain, which includes battery production, rare earth supplies and its own record-setting 7,000 car capacity ocean-going car carriers. - FMT pic for illustration only. Now is a good time for people in Malaysia and Southeast Asia to buy Chinese cars. They offer good value for money, being about 30% cheaper than equivalent legacy car models, and are packed with features previously only offered in cars from premium brands that cost twice as much. However, the main disadvantage of Chinese cars is that they lack the legacy enjoyed by the 150-year old Mercedes Benz or Peugeot, or even the 118-year old Toyoda loom company which preceded the 88 year-old Toyota Motor Corporation. Advertisement To overcome that fear of the unknown, Chinese car makers who began global exports only about 10 years ago started with gimmicky but nevertheless mind-boggling vehicle warranties, such as a million kilometres for their internal combustion engines. While that phase is over, many Chinese EV makers still offer an outstanding eight-year 160,000km powertrain warranty covering electric motors, inverter and related drivetrain components to emphasise confidence in their core EV technology. Coming back to my main point, it's very simple. Malaysian and Southeast Asian car buyers are benefiting from China's industrial policy, which includes broad infrastructural subsidies for the car industry from the central government. On another level, many provincial governments in China compete in car manufacturing output to gain brownie points with the central administration. They provide incentives to the respective companies, such as export sales subsidies. It's understood that these export sales incentives can reach as much as RMB14,000 (RM7,800) per car. But it's not just subsidies that make China's cars cheaper than their legacy counterparts. China's automotive industry has emerged as a global leader in technological advancement. As a benchmark, its use of robotics has outstripped legacy car firms, significantly influenced by government policies and subsidies. The country's strategic approach has enabled various manufacturers – from state-owned giants such as Shanghai Auto (SAIC) and Beijing Auto (BAIC) to privately-held enterprises like BYD, Geely, Chery, and GWM – to thrive in a competitive market. Central to the Chinese government's policies is the 'Made in China 2025' initiative, which aims to elevate domestic manufacturing, particularly in high-tech sectors, including automotive production. This initiative seeks to reduce reliance on foreign technology, ensuring that Chinese carmakers can innovate and compete domestically and internationally. Moreover, Beijing's policies have focused heavily on promoting EVs both to improve energy security as well as to reduce carbon emissions. Subsidies for EV manufacturers have been generous; for instance, substantial financial incentives are provided to consumers purchasing electric cars, which in turn propels sales and encourages manufacturers to invest in research and development. These measures have resulted in a dramatic increase in EV production, placing China at the forefront of the global market. State-owned firms like SAIC Motor and Dongfeng Motor benefit from government backing and preferential access to funding, enabling them to invest in large-scale production facilities and enhance their technological capabilities. These companies can navigate the complex regulatory environment more effectively than private firms due to their established connections and resources. On the other hand, private companies like BYD, Chery, and GWM have leveraged the supportive environment fostered by government policies to carve significant market share. BYD, for instance, has emerged as a leader in EVs and is iconic for its integrated supply chain, which includes battery production, rare earth supplies and its own record-setting 7,000 car capacity ocean-going car carriers. China also made an unprecedented concession for Tesla, the world's leading EV innovator, allowing it the distinction of being the only 100% foreign-owned company permitted to manufacture its cars in China. The objective was to galvanise domestic Chinese EV makers to improve their cars to world-class status in competing with Tesla. Beijing's alignment with sustainable development goals has facilitated Tesla's growth, with subsidies for EV purchases benefitting its sales. Additionally, the cooperation between Tesla and local suppliers has allowed it to optimise its supply chain while adhering to local regulations. As a result, the price of Tesla cars in Malaysia are the cheapest in the world, after Shanghai, where the Tesla Model Y is made. Note: I'm not one to refuse subsidies and, after some budgeting, I've bought my first Chinese car, an EV, for RM100,000. Out of the more than 50 cars that I've owned in my lifetime, this is only my second new car. The first was a Toyota Prius hybrid which I bought for RM100,000 12 years ago, when hybrid cars were duty-free. This hybrid is still a reliable daily runner and delivers super fuel efficiency. Now entering the era of electrification, I want to experience how this BEV, as a representative of China's EV industry, performs. Read this column for updates. # The views expressed are those of the writer and do not necessarily reflect those of FMT.
