Hino Motors Shares Jump on Merger Plan with Mitsubishi Fuso Truck and Bus

By Kosaku Narioka

Hino Motors shares rose sharply Wednesday morning following news of a merger plan with Daimler Truck-owned Mitsubishi Fuso Truck and Bus.

The Hino shares were recently 12% higher at 619 yen after rising as much as 15% earlier.

Hino said Tuesday after market close that it agreed to merge with Mitsubishi Fuso Truck and Bus on an equal footing by the end of 2024.

Hino's earnings have deteriorated since it acknowledged in March 2022 the falsification of engine performance data and suspended the sale in Japan of vehicles equipped with certain engines. The truck unit of Toyota Motor posted a net loss of Y117.66 billion ($841.7 million) for the fiscal year ended in March.

In late April, the company projected net profit of Y10.00 billion for this fiscal year as it started resuming shipping of the vehicles affected after receiving the government's safety certificates.

Toyota and Daimler Truck said Tuesday that they would equally invest in the holding company of the merged company to be listed in Japan and work together on the development of hydrogen-fuel, autonomous-driving and electric-vehicle technologies.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

May 30, 2023 22:24 ET (02:24 GMT)

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