Unknown Executive  

[Interpreted] Ladies and gentlemen, thank you very much for joining us today despite busy schedule. Allow me to introduce myself, I am [ Asami Abe ], your MC for today. We would now like to begin the joint press conference between the 4 companies, Mitsubishi Fuso Truck and Bus, Hino Motors, Daimler Truck and Toyota Motor Corporation.

To begin with, please allow me to introduce the CEO of the new company and also the representative, President and CEO of Mitsubishi Fuso Truck and Bus, Mr. Karl Deppen. Mr. Karl Deppen, please proceed to the stage.

Karl Deppen   Member of the Board of Management

Dear ladies and gentlemen, dear supporters and friends from media, more than 2 years ago, the idea was born about the potential collaboration of Hino Motors and Mitsubishi Fuso that would transform the global automotive landscape as we know it. The 4 companies took it forward. Thanks to the shared belief that our industry will be undergoing severe changes that require action. And today, it is more true than ever. In the early phase of our discussion, we shared our shared project vision, which has defined our common beliefs and joined ambition. We did this by considering the transformation of the industry and the investment needs into CASE technologies. It was a daunting challenge, but together, we saw a way forward.

And today, we are here to announce that Daimler Truck, Toyota Motor Corporation, Mitsubishi Fuso and Hino Motors, have officially concluded the definite agreements to integrate Mitsubishi Fuso and Hino. This means Hino and Fuso will come together on an equal footing to cooperate and develop commercial vehicles together, including collaboration on procurement and production. We aim for the new listed holding company to start operations in April next year. Holding company will be listed on the prime market of the Tokyo Stock Exchange.

Daimler Truck and Toyota will each aim to own 25% of that company's stock with the rest of the shares available for the free float. That holding company, which will own Mitsubishi Fuso and Hino will be located right here in Tokyo.

Now let's take a look at the companies involved. First, Hino Motors. Over 30,000 employees, products produced and sold in more than 19 markets. Hino motors has been making a better world in future by helping people and goods to get where they need to go for more than 80 years. And Mitsubishi Fuso, another 90 years of manufacturing process sold in over 170 markets. Creators of Japan's first mass-produced, all-electric light-duty truck, the eCanter, which is Toyota and Daimler Truck. Two respective leaders of the automotive industry are committing to join forces. It is this courage, this foresight to take the long view that has set both companies apart as leaders in their respective fields. And it was this common view of imagining the future for an integrated Hino and Fuso, which energized all of us to pursue the task.

Two years ago, we signed the Memorandum of Understanding and informed you about our aspirations. Since then, our industry has become even tougher. Our Japanese customers have been struggling with the so-called 2024 problem of driver shortage. And outside of Japan, strong competition from new large volume competitors is more fierce than ever. At the same time, we all have to step up significant investment into the relevant future case technologies and carbon-neutral mobility, this is why in our industry, scale matters, and this is why the Japanese market cannot support so many commercial vehicle manufacturers. And this is why today is a great day. It is a great day for our customers, for our dealers and distributors for our employees, for our shareholders, for our industry and for society.

Let me explain a bit. For our customers, it is a great day because it will make our strong brands even stronger by combining engineering strength, competencies and expertise. The new company will be able to even better support our customers and their transportation needs. We will be ready to provide them with strong, reliable and efficient products superior services and solutions while being their go-to companion on migrating to 0 emission solutions over the next year.

Going forward, our integration means great things for commercial vehicles with our combined expertise, passion and resources, this new company will offer new levels of quality, efficiency, and technology to our customers. It is also a great day for our dealers and distributors because we appreciate and value the close cooperation with them and honor the long-standing relationships we have shared for decades.

This merger will help us to provide even better products in the future to make us successful together in our markets. It is also a great day for our employees as we are building a new company that is strong and healthy and draws on even larger competence and knowledge. We built a resilient business that has bright future and provides great employment and development opportunities for our employees around the world. We will be a company that people are proud to work for and happy to be associated with. It is also a great day for our shareholders as we are aspiring to capitalize on our combined strengths and aspire to turn our market success into attractive total shareholder return.

And as a listed company, we aim to be transparent in disclosure, trusted in performance and reliable in our governance. And it is a great day for our industry because we need to accelerate the development of CASE Technologies. The decarbonization of transport is a key task for the industry and we will be an even stronger part of that solution. And as a strong manufacturer will be also good for our suppliers to grow and support our customers with better technologies and efficiency.

As we accelerate our development of technology, we also increased our global competitiveness. And finally, very important, it is a great day for society. Modern societies need modern transportation and we aim at continuously providing safe and clean on-road transportation. And as much as we focus on our products and services, we also feel obliged to remain good corporate citizens in our neighborhoods, no matter here in Japan or internationally.

Ladies and gentlemen, combining 2 strong companies under one joint enterprise, it's a huge task. And what sounds like a logical move is, in reality, a complex transaction requiring tremendous effort hard work and enormous determination by everybody involved. So while this is a very special day for all of us, I would also like to acknowledge and appreciate the incredible hard work of all the employees and teams in Hino, Toyota, Mitsubishi Fuso and Daimler Truck. A big thank you goes to all of you. And to get here today, took an incredible journey over the past 2 years, filled with deadlocks, difficulties and setbacks. But even more so, it was a journey of motivation, shared ambitions and the strong desire to seize the huge opportunity for both Fuso and Hino.

I would also like to mention and appreciate the strong encouragement we have received from authorities and ministries to go ahead with our plans to strengthen our industry. And on a personal note, I feel truly honored to have gained the trust of the major shareholders to lead this new company. From the very beginning, I have been convinced that this cooperation is for the good of all our stakeholders. With this, we will make the Hino and Fuso brands even stronger. To build and lead this new company is for me a tremendous honor and even more so, it is an obligation and motivation to make it a success. And while acknowledging all the hard work necessary to get to this major milestone today, the real work will only start from now on.

So what's going to happen next? As I mentioned earlier, we aim for the new listed holding company to start operations in April 2026. Until then, we have defined several milestones in between to make ourselves ready for it. We will now immediately file for the antitrust clearance here in Japan, to get the approval to proceed with our plans. The same is true for many other countries we are doing business in.

Furthermore, we will select and fix the name of the new company. We will conclude the agreements of governance and company structure, and we will announce the full management team and the Board as soon as they have been put together. We will incorporate the new company to be ready to go live by April 1, and we will announce all these details to the public in due time later in the year to keep you all informed. So please stay tuned and connected, and I invite you to join us on this exciting journey.

I see this as an important opportunity for Fuso and Hino, and I'm pleased that my fellow CEOs see it the same way. And I'm sure you'd like to hear it from them directly. So let me now pass on to my main partner in this incredible journey, a man for whom I have the utmost respect. Hino Motors CEO, Ogiso san.

Satoshi Ogiso   President, CEO, CHRO & Representative Director

[Interpreted]

I'm Ogiso of Hino Motors. As the new company CEO, Mr. Deppen has mentioned, environment that is surrounding our commercial vehicle industry is facing a major turning point with various challenges such as achieving carbon neutrality and further efficiency in logistics. In order to respond to these changes, it is obvious that we need to advance our speed and flexibility, which requires appropriate investment.

To achieve a better future beyond these challenges, the collaboration between the 4 companies are truly a once-in-a-lifetime opportunity. As the leading company of passenger cars, Toyota continues to lead the realization of a future mobility society with its thorough understanding of the customers in the transportation industry, Daimler Truck continues to contribute through their advanced technology as a top-notch commercial vehicle company receiving the strong support from these 2 companies, Mitsubishi Fuso and Hino, which have long been engaged in a healthy competition in Japan and Asia will be operating business in collaboration.

What we share is the strong aspiration to contribute to a prosperous society through mobility. In order to envision and realize the future in line with this aspiration, the 4 companies will be forming an alliance to complement the effort with their own strengths. And in order to have -- be able to play our roles and continue our contribution we need to have a strong foundation not only the financial capital and foundation, also the human capital will be important, and we need to do what we have to do for each individual company. And as a one company to contribute, Hino is trying to strengthen itself and also for our human capital, for the synergy, we need to have a working environment and be a company where our employees can excel. And even after the integration, we would like to aim to become such a company.

Mitsubishi Fuso and Hino have different histories and culture. But by combining the know-how and scale of the 2 companies, we can of course expect various synergies in business from development, purchasing and production, but not only that, the synergy effect we can expect within counterinfusion of the different cultures are immeasurable.

In the past 2 years, all parties have engaged diligently and tenaciously in discussions about what kind of future we will realize. It did take a slightly longer time than we had expected, but in the meantime, we make best use of the time to strengthen the trust among us.

I would like to once again express my gratitude to 3 companies for their dedication to realize this collaboration. The CEO of the integrated company, Mr. Karl Deppen is whom we share the same aspirations. And together, we will create empathy among our colleagues and face all stakeholders with integrity. In an effort to contribute to this largely transforming society, I'm confident that we will be able to create such a strong and resilient team we will collaborate to create an ever better future as a new commercial vehicle company rooted in Japan.

Thank you so very much for your continued support and understanding.

Unknown Executive  

Ms. Karin, please take the floor.

Karin Radstrom   President, CEO & Member of the Board of Management

Honorable guests, esteemed partners of Toyota and Hino Motors, and of course, members of the press. It's really an honor to be here today with all of you. The planned integration of Mitsubishi Fuso Truck & Bus Corporation and Hino Motors, is truly historic. Two iconic companies that have shaped the commercial vehicle industry in Japan, in Asia and beyond for decades and are taking a bold step toward the future of transportation. A step of this magnitude requires significant preparations. So I first want to thank our partners at Toyota.

From the very beginning, our negotiations have been defined by mutual respect, constructive dialogue and a shared sense of purpose. And I'm very grateful for that. I also want to thank the teams who have worked on both sides, on all sides, tirelessly towards this day. Two years ago, we first shared our rationale and our vision for this integration. We're bringing together 2 strong partners to form an even stronger company and to successfully shape decarbonization of transportation. In the currently ongoing historic transformation of our industries, truck companies must develop parallel multiple technologies at the same time. It's not just diesel. We also work on battery electric, hydrogen fuel cell and potentially also hydrogen combustion drives. So this is quite a stretch.

And there is only one way to make all of these simultaneous efforts work economically, and this is scale. And while Daimler Truck is a global leader in commercial vehicles, most of our other brands are specializing in heavy-duty trucks. As a consequence for our light-duty specialist, Mitsubishi Fuso, the potential to leverage scale within the group has been limited. Together with Hino Motors, this potential is much greater. This integration, therefore, comes exactly at the right time and Mitsubishi Fuso enters as a strong partner. Fuso is today the most international brand in the Daimler Truck family with trucks and buses operating in over 170 markets. Fuso offers a full range of commercial vehicles engineered for very diverse use cases, ranging from dense urban areas to the quite rural environments. And Fuso has been leading the way in zero-emission transport.

Already in 2017, it launched Japan's first series-produced electric truck, the eCanter. Today, the eCanter is in daily operations in 38 markets across the world in Europe, Oceania, Asia and South America. Beyond this technological leadership, Fuso has also shown a strong financial resilience throughout the last years. So we, as Daimler Truck are bringing great assets into the integration, and I'm convinced that these are the perfect fit for Hino motors.

I talked about the importance of scale. In this respect, the new company has great potential as Mitsubishi Fuso and Hino Motors can pool their R&D, industrial strength and market presence.

On top, both companies share this ambition of putting the customer first, driving innovation and making sustainable transportation reality. And with Karl Deppen, the newly formed company will have a CEO who stands for this vision and who knows how to leverage the strength of both companies. I had the chance to work closely with Karl for the last 4 years. He is, first of all, a fantastic person but also he's a great leader who understands the whole value chain of our business. I've had the opportunity to see Karl drive performance and deliver improved results, most recently as the CEO of Mitsubishi Fuso. So I'm confident that with Karl, we will have the right person who will set up this new company for success.

Karl mentioned it, and I also want to say, I'm convinced that the step we are taking today is good for all stakeholders, for our customers, our employees, our shareholders and for society as a whole. They will benefit from having even stronger partner and an even stronger driving force in the historic transformation of our industry. At Daimler Truck, we are really excited about the step we are taking today, and we can't wait to see Mitsubishi Fuso and Hino Motors join forces.

Unknown Executive  

And finally, Mr. Koji Sato, CEO of Toyota Motor Corporation, please.

Koji Sato   President, CEO, Operating Officer & Director

[Interpreted]

I'm Koji Sato of Toyota Motor Corporation. While looking back on how we came to consider this collaboration, I would like to talk a little bit about our 4 companies' shared desire. The starting point of this collaboration is the shared desire to create the future of commercial vehicles together by leveraging the strengths of Mitsubishi Fuso and Hino to protect our business foundations in Japan and Asia.

2.5 years ago, the then Daimler Trucks CEO, Mr. Martin Daum and the then Toyota President, Mr. Akio Toyoda began considering collaboration based on a shared vision and sense of values. Companies with different histories and cultures coming together like this, meant that we needed to overcome various challenges. Although there were times when differences in ideas and how to move forward with integration were hard to bridge, our 4 companies took the time to repeatedly engage in dialogue and deepen mutual understanding driven by the empathy and trust shared by the top leaders.

I believe that our unwavering commitment to the future of commercial vehicles enabled us to overcome the difficulties and to keep moving forward toward our integration. In the course of our discussions, there is a thought that was shared by the CEO of Daimler Truck, Ms. Karin. She said that Daimler Truck values being a company rooted in the local community. The integrated company should be a truly global company rooted in Japan. I couldn't have agreed more. Mr. Deppen, who will head the integrated company, he's the perfect person to lead a truly global company rooted in Japan. He has been involved in the Japanese truck industry for more than 20 years and has extensive global experience.

Under Mr. Deppen's leadership, I believe that Mitsubishi Fuso and Hino will be able to create synergies through this integration while honing the manufacturing capabilities that both have cultivated as truck manufacturers. This integration will not only enable them to secure the scale needed to compete globally, but will also bring the strengths of Mitsubishi Fuso and Hino together to expand the respective areas of expertise, accelerating technology codevelopment and increased production efficiencies. Going forward, the 2 companies will work together to strengthen their business bases in Japan and Asia. And Daimler Truck and Toyota will support the integrated company in improving its competitiveness based on CASE technologies.

In addition, we would like to apply our 4 company framework accelerate the implementation of CASE technologies towards solving social issues surrounding commercial vehicles, including achieving carbon neutrality. This collaboration has also deepened the partnership between Daimler Truck and Toyota. Symbolic of this, our efforts in the domain of hydrogen, we are exploring various possibilities to combine our 2 companies' technological capabilities and accelerate the social implementation and widespread adoption of hydrogen mobility, including what in-depth elaboration should truly be like. We will continue to work toward making our efforts a reality. We believe that the future is for us to build together.

Today's definitive agreement is not the goal, but the starting line. We will continue our efforts to deepen our mutual understanding while respecting differences in cultures and ways of thinking to make our partnership even better. Our 4 companies aiming to achieve a sustainable mobility society will continue to create the future of commercial vehicles together. We greatly appreciate your continued understanding and support. Thank you very much.

Unknown Executive  

[Interpreted]

Thank you very much to all the speakers. Now we would like to open the questions. We will be getting the stage ready for that. So please allow us a few moments. Thank you.

Unknown Executive  

[Interpreted]

Thank you for your patience. Now we would like to open the floor for questions. I'd like to invite the speakers up on the stage. Let me introduce the CEO of the new company; and the President and CEO of Mitsubishi Fuso Truck and Bus Corporation, Mr. Karl Deppen. Hino Motor Company, CEO and President, Satoshi Ogiso. Daimler Truck CEO and President, Karin Radstrom. President and CEO of Toyota Motor Corporation, Koji Sato. Please be seated. Now we'd like to invite questions from the journalists in the room. [Operator Instructions] In that block over there in the second row in the center. The person with glasses.

Unknown Analyst  

[Interpreted]

I'm Nakamura from [indiscernible]. I have 2 questions. Number one, the 2 of you from Daimler Truck. Over the past 2 years, we have heard about scandals about Hino's certifications, and that slowed the process. And Daimler Truck, the truck segment in Asia and Europe markets remained sluggish. So over the past 2 years, what drove you with the necessity with working with Hino. Now about this timing of 10th of June to make that announcement, were there anything that made you believe that this would be the best timing?

Karl Deppen   Member of the Board of Management

Thank you very much, Nakamura-san for the question. I think if we go back to the very beginning of the discussion, what was driving all 4 companies is really the long view. And we all know the commercial vehicle industry is always faced with volatility in the markets as it follows usually macroeconomic development. So handling volatility and dealing with fluctuating markets is one thing that the commercial vehicle industry is used to.

When we engaged in the discussion, we didn't have the next 1, 2 or 3 years in mind, we had the next 15 to 20 years in mind how we can prepare for the future appropriately. And with the large investments needed for the decarbonization of transportation for CASE technologies, we thought now is the best time as we are at the beginning of the investment cycle to make the best use of investment and funding for the integrated company.

So this was at the very beginning, the long-term view we applied. As you all know, the Hino situation was quite severe after the emission fraud. Nevertheless, we have also seen over the past 2 years that the Hino team has done a lot of work to mitigate and to resolve the situation. I think it has been an incredible task. And when we felt that the way has cleared to proceed, we thought it's a good opportunity now to take the next step in the cooperation.

So with that, I would remind us, our industry has -- is following very long cycles. So we really have to see a long-term as an investment into the future.

Unknown Analyst  

[Interpreted] May I ask one more question. Ogiso-san Sato-san, I hope you would respond to this question. As you make this announcement, Hamura plant was also announced to be transferred to Toyota and your press release talks about that. Hino's truck that Toyota manufacturers at Hamura and also the necessary funds for the purpose of mitigation of the Hino's scandals. But are there anything else that you can share with us today?

Satoshi Ogiso   President, CEO, CHRO & Representative Director

[Interpreted] This is Ogiso speaking, and I would like to respond. Well, as we integrate the management, Toyota and Hino is commercial vehicle domain or framed vehicle domain, I thought it will be an optimum opportunity to clearly define the roles of 2 companies. Hamura plant has been producing for Toyota for more than 60 years since 1963, honing its production engineering technologies, Hilux, [ Prado ], Land Cruiser 250, smaller truck, Dyna and Detroit for Daimler Truck. We have been producing them at Hamura. And after long-lasting discussions, they framed vehicles' core factory for Toyota is something that would make the greatest contribution to the customers and to the society. So we made that announcement today, together with the announcement of the integration of the 2 companies further strengthening up competitiveness and further strengthening of Hamura plant is something that we planned with that transfer.

I thank you for your questions. Actually, I have a favor to ask of you about Hamura plants. I'm sure you have questions. But today, we have Mr. Deppen and Ms. Karin and Mr. Sato. So this is the place for all 4 of us, so please do not focus too much on Hamura. And if you're interested in Hamura, please let us know the PR department of the 2 companies since this is a place for 4 of us. Thank you very much.

Unknown Executive  

[Interpreted] Then let's go to the next question. [Operator Instructions] The person in the front row and the person with the mask, the second from the back.

Unknown Attendee  

[Interpreted ] Okay. I'm Takamura from Yomiuri Newspaper. And I would like to ask my first question to all 4 CEOs. So for each of your company, Toyota, Daimler Truck, Hino and Fuso, those are the 2 pairs that I want to ask. What was the attractiveness of each other as a partner? And what made that attractiveness made you decide this collaboration? So what do you feel is a strong appeal for each of you so between Toyota and Daimler Truck and between Hino and Fuso. That's my first question.

Karl Deppen   Member of the Board of Management

Okay. Thank you very much Takamura-san. I'll try to answer that. What has been the attractiveness? The attractiveness has been to make use of the opportunity combining 2 strong companies at the time where everybody in the industry needs to step up investment and preparation for the future. And we felt that knowing what our product plan was, knowing what our investment needs would be, we could imagine that the similar situation must be at Hino and we saw this is the right time to start that discussion. And we found out that we were at a similar stage of making assessment on future investment, and we thought this is the right time to combine strengths and also have most efficient use of investment. But I may pass on to Ogiso san, maybe you want to share your views.

Satoshi Ogiso   President, CEO, CHRO & Representative Director

[Interpreted ] Well, actually, I think I have the similar answer to what Deppen san has just answered. I was feeling the same kind of attractiveness and I think that is the very important point of the collaboration and the significance of this integration. Mitsubishi Fuso and Hino has mostly in the same market and is facing similar customers, and we are trying to contribute to this industry and also to the society.

So we have shared visions and shared understanding of the challenges, also sharing the same purposes. Therefore, once we understand each other very well, I think that we will be able to work together very -- in a very good way. And probably what you wanted to ask is that we wanted to ask about the relationship that we have between the 2 companies between Fuso and Hino.

And as you know, for me, I know very much the strength and value of Toyota and now when we work with Fuso with Hino works with Fuso, it means that the expert of trucks, Daimler, would become our partner. That was another attractiveness on working with Fuso. So probably next will be Karin san to respond.

Karin Radstrom   President, CEO & Member of the Board of Management

Yes. Maybe to add to that, I think as we mentioned already, we started this collaboration already 2 years ago, at that time, different CEO. So it was on our side [ Down san ] and on Toyota side, Toyoda san. And we both Sato san and me had the opportunity to come in. And we have talked about it that it has always been a very strong respectful collaboration and both companies really see the benefits also from the Daimler and the Toyota perspective.

And therefore, even though we had very tough negotiations, we were always aiming for the same target and we were always coming in with good spirit and looking for solutions. And I think we are very proud to sit here today from -- but our perspective is a historic day for Japanese industry when we will build a very strong Japanese global truck company. So it's a very big day.

Unknown Executive  

[Interpreted ] So it is just as Karin-san has said I think she has explained what I wanted to say, and that is the most point that I respect about Daimler Truck. Daimler Truck puts importance on being a company rooted in the community that they are operating in. And they had been very respectful in dealing and talking with us. And of course, they are a leading company for the global commercial vehicle industry. Everyone knows about that. But still, they are -- have your vision to develop a company that will be very much rooted in the community that they operate in. And that is the kind of company Daimler Truck is, and that is the attractiveness from our perspective.

Of course, they have the very outstanding technologies and various factors of strength. But what I want to say here and emphasize here, which I was something that is a little difficult to see, but the predecessor, [ Mr. Down ] , in a nutshell, he was a person that is a true truck lover. Maybe a truck guy is the right word. He loves trucks. He drives trucks himself. He's a person who is flowing with truck love. And Karin-san is also a person who has the love for trucks. And as you well know, in our company, for our Chairman, he is the master driver of Toyota.

And I myself, I'm a car lover and car guy myself. And excuse me -- not only us, not only us top leaders, but many people inside of our company loves cars and that is our daily life. So I think there has been quite a strong sympathy on that point too. Our love for the products that we have. And that has, I think, had -- we felt a great chemistry between us and probably that is why we are here today sitting next to each other.

Unknown Attendee  

[Interpreted ] And for my second question, regarding electrification also about autonomous driving. What kind of technologies are you going to jointly develop or research on? What is the initiatives for electrification and autonomous driving that you have in plan?

Karl Deppen   Member of the Board of Management

Yes. I think for electric -- electrification, we already have products on the road. Hino has already the eDutro on the market. Fuso has the eCanter on the market. I think this is already a very bold statement on taking the lead for this technology in the market. And as you all know, especially for urban distribution, BEV technology is very appropriate and suitable.

Regarding autonomous driving, we all understand the complexity of the technology, and it is always a balance of demand from logistic companies. We know the driver shortage challenge and everybody is hoping that autonomous driving can resolve all these issues. But we also have to always be mindful on road safety and safeguarding the appropriate maturity of the technology when operating heavy-duty trucks at high speed.

So the balance of safety and society demand is very crucial to find the right balance here. And this will take some time, but I think this is one of the reasons why we combined our strength to be even better positioned to drive that technology forward.

Unknown Executive  

[Interpreted ] If you have 2 questions, I would like to encourage you to ask 2 of them at the same time. Who else has questions? Please let us know. Let us move on to the block over there from the second row, 1/3 from far left of the room, please.

Unknown Analyst  

[Interpreted ] I'm [indiscernible] Two questions. Number one, it is about the future, the impact of integration. What other benefit do you foresee? Mr. Deppen, earlier talked about the mid- to long-term perspectives set economy of scale and other numbers that you would like to achieve going forward as the impact I'd like to learn.

The second question goes to Sato-san, in the future of your 4 of you working together, you mentioned hydrogen earlier. Toyota has been making bodies the industry. And in February, FC -- new FC system was announced for commercial vehicles. Hino, Daimler, Mitsubishi, Fuso will receive such technologies. So how do you foresee the hydrogen-based society with your endeavor?

Karl Deppen   Member of the Board of Management

Maybe I'll start with a question on the synergies. Actually, it's too early to give you a specific number. Of course, we are well aware that this is a very interesting detail, but we also have to bear in mind, we are still 2 companies, and we have to wait until we get the antitrust approval from the authorities before we can proceed and share those details in a more specific way. Nevertheless, we do believe there is significant opportunity and especially in future investment efficiency, we expect significant gains that the 2 companies don't have to invest twice.

But if we do it at the beginning of the investment cycle, we can align best direction for the future investments. So bear with us a bit. We need a bit more patience from you as well. But I think once we have the clearance from the Fair Trade Commission and get the go ahead for the antitrust clearance, then I'm very confident that we can come up with also more specific numbers. Thank you.

Unknown Executive  

[Interpreted ] Thank you very much for the question. Probably, I should respond to his second question -- I'm sorry. I would like to respond to your second question. In order to realize the hydrogen-based society, we have to make the entire loop of produce, convey and use. So that's the reason why we have -- we need bodies so that we can generate demand for hydrogen. In the commercial vehicle carbon neutrality.

Actually, this sector accounts for 40% of the entire mobility in terms of the emissions. If you want to neutralize this sector, you have to be more efficient in transport and other challenges after we met, especially in heavy-duty truck sector, the contribution of using hydrogen would be great. So that's the assumption that we have in the smaller vehicle areas, we have SC cells as well as control technologies are the prowess that Toyota has developed so far.

On the other hand, Daimler Truck is extremely strong in heavy-duty drug sector. So both of us put together, not just supplying each other's technologies, but do the R&D for sales, for example, or exchange ideas about applications for faster realization of such visions. So we have done such things separately in the past, but now we can do it together so that we can be faster. So on the project basis, there are some initiatives ongoing. So hydrogen mobility in heavy truck -- heavy duty truck area is the beginning of such acceleration efforts. Thank you very much.

Unknown Executive  

[Interpreted ] Thank you. Anyone else with questions? Person in the other block, the person sitting in the front, the back end.

Unknown Analyst  

[Interpreted ] [indiscernible] of JJ. I have 2 questions. My first question is for Ogiso-san. So going forward, regarding the sales activities for the dealers, what will -- are you thinking about integrating the dealers as well?

And the second question goes to Deppen-san. In May of 2023, you have said that the participation to CJPT was something too early to consider. But with the new company, will you be thinking about participating in CJPT? Or do you have any other plans? So that will be my 2 questions.

Satoshi Ogiso   President, CEO, CHRO & Representative Director

[Interpreted ] I'll first respond to your first question. When you think about the commercial vehicle business, it's really about each and every customer. We have to think about how we face each and every customer sincerely and not just to sell the vehicles, but also to support them from a total life perspective. And this is something that I completely have an agreement with Deppen san, but Hino and Mitsubishi Fuso, we think that it's important to maintain each brand and for the sales side, sometimes we will need to be in competition to contribute to our customers. And that will be the basics so that our integrated company can become stronger. So for the sales side, of course, from a long-term perspective, there may be many things that we need to consider.

But when we think about this integration of the 2 companies, we have to further put importance on each brand. And together with our dealers, we have to take care of Hino's customers, Mitsubishi Fuso's customers. This will not change. And if you want to add anything, if you have anything different that you want to say, please you're welcome to add.

Karl Deppen   Member of the Board of Management

No. Thank you, Ogiso san. I think we share the same view. We enjoy a trusted network of outlets for our brands, both on the Hino side and Fuso side, and we value that a lot. And we also see we can be effective and add value for our customers, and this is why we want to maintain it. And this is a very important element, respecting the 2 brands and also the loyal customer base we are enjoying, and this is what we very much appreciate, and we will further support and nurture.

And [ Nishimura san ] your second question on CJPT, I would say, maybe I answer that question once we have the new company. But I think being here today shows that we can also work very well together in the current framework. And I think this will take some more time before we take that decision. But I think important is that we move forward in different ways of cooperation and we've shown that in the past, and we will do so in the future as well. Thank you.

Unknown Executive  

[Interpreted ] Thank you very much. Thank you for your questions, Nishimura san Now, anyone else in the room? [indiscernible] just begin with the central aisle. There is a person who is wearing a mask in the back.

Unknown Analyst  

[Interpreted ] I'm Yada from [indiscernible]. Now, I would like you to send a message to your domestic users here in Japan. You talked about your dealership. How about the product names. Do you think you'll be integrating any models going forward to be more cost efficient? So that you may be able to launch some affordable and competitive model into the future. Do you have any synergies being planned in the areas of your products going forward?

Karl Deppen   Member of the Board of Management

Okay. Let me answer that, [indiscernible]. Thank you. I think, yes, product name sharing products and so on. This is too early to answer. I think also here, we have to wait until we have antitrust and merger clearance from the authorities. Of course, there have been some ideas, but we also see that already today, fortunately, both companies have affordable and competitive and very reliable products available.

So there is a very good coverage of the different segments. And going forward, I think we will further strengthen our competitiveness in the lineups for both brands. And there is today already a distinct differentiation among the brands, and we will maintain that and further strengthen that going forward. So that the Hino customer will enjoy strong Hino products and the Fuso customer can enjoy strong and competitive Fuso products.

Unknown Executive  

[Interpreted ] And I'd like to go on to the next question. The person in the front row, the microphone will be brought to you, the person with the gray jacket, please.

Unknown Attendee  

[Interpreted ] I'm [ Yao from Nikkei Shimbun ]. And I have 2 questions to Sato-san. The framework that has been announced today, what will be Toyota's -- so for Toyota, the voting rights has been announced that it's going to be 19.9%. And so the new company will not be the equity method affiliate of Toyota. And it did mention that there was -- it was because of some of the antitrust-related issues, and I want to know the details. That's my first question.

And the second question for Toyota and the Daimler Truck, I've understood that there are projects that you'll work together on Hydrogen, namely. But for the new company, how will Toyota be engaged? Those are my 2 questions.

Yasuhiko Sato   Senior Managing Officer & Chief Officer of Japan Sales Business Group

[Interpreted ] Thank you, [ Yao san ], for your question. And for the second question and first question, I think I'd like to merge the two and respond to it together. First of all, for the 2 companies, Daimler Truck and Toyota toward -- for the new company, we will be strongly backing up with the technologies that we have and namely, it will be the CASE technologies. We will contribute the CASE technologies so that we can back up the further growth of the commercial vehicle business. And that will be the main mission that the 2 companies will have.

And based on that, this time regarding the voting ratio -- voting rates ratio, as we have announced this time, the main reason why we are -- have decided that is because in the area of the light-duty vehicles, an appropriate competitive environment needs to be protected. That is our understanding.

And with our decision, we have made this decision. And already, Toyota in the light-duty vehicle, we have 27% of market share in this area. And so with Toyota -- under the Toyota brand there are many customers using our products. And therefore, when we think about the -- if we are involved as an affiliate company, then there is going to be an impact to the competitiveness of this light-duty vehicle -- light-duty truck environment.

And that is why we have made the decision that the voting right ratio is going to be kept at the level that was announced in today's release. Therefore, I think I've answered your second question, first of all, in the beginning. That is the background. So we would like to provide a strong technical backup and support to the new company. That is the commitment that we have, and we will continue our strong collaboration and support going forward. Thank you.

Unknown Executive  

[Interpreted ] Thank you very much for your question. We have also received -- we can also receive questions from those who are participating online. [Operator Instructions] Any questions from our online participants? We are now inviting questions from online participants. [Operator Instructions]

No questions from our online participants. Well, in that case, we should come back to the venue and see whether you have further questions from those of you who are in the room. Do you have any more questions? I see some hands. Someone in the second row from the front.

Unknown Attendee  

[Interpreted ] I'm Tanaka from Nikkei Daily. I have questions to all of you. Well, it's been 2 years since the MOU, and it was slower than everyone had expected. And during that time, the business environment has changed a bit. Well, do you have any concerns that your final decision has been delayed?

Karl Deppen   Member of the Board of Management

Thank you, Tanaka-san. I think, yes, when we had made the announcement on the MOU, everybody had hoped for a faster proceeding of the corporation. But on the other hand, we also had to accept that some things took a bit longer. Nevertheless, I think we felt very confident that this is the right direction to take. So I think this was also a good testament of our partnership, understanding each other's situation.

And see the potential of cooperation for the mid and long term. And I think this was what was driving the decision to take a bit more time, even though we all are impatient and want to move on. But sometimes it's also the balance of selecting the right partner and then give it time to grow in the right direction. Nothing -- this is exactly what happened here.

Yes, of course, we also see the macroeconomic environment has not improved since then. But even more so, we need to fight for a competitive setup in the mid and long term. And this is what the cooperation will set the base for and this is why we are still confident that this is the right direction to take. Thank you.

Unknown Attendee  

[Interpreted ] How about the second question?

Unknown Executive  

[Interpreted ] If I may, I would like to add one thing. Now, April '26 is the starting day of this new company. So the mutual trust-based endeavors. Certainly, we'll accelerate various activities after the official merge date of April '26. Thank you.

Unknown Executive  

[Interpreted ] If I may, I would like to add something. Now considering the first announcement, it is true that it has taken a bit of time. For one thing, we had this certification issue of Hino, some losses in Japan and United States, and we had to ask authorities to understand our position, and that certainly took time. That's one thing. But then there had been some very clear-cut decisions over what has happened and what will happen. And we have gone over that. And now we have come to this day and this is a great news. We didn't spend 2 years for nothing.

As Mr. Deppen mentioned earlier, because we had 2 years there were discussions that we were able to have different cultures meet, all of us are smiling on the stage, sometimes I confronted Deppen-san with a lots of smiles on my face. Did it happen? Did it? Anyway, it was very important for all of us to argue on an honest basis so that we all understood where the differences were. And now we have come to this day. Therefore, everything will be much smoother after today. All the teams are clear of what they have to do once we sit down and do the further work going forward. Karin-san, do you have anything to add?

Karin Radstrom   President, CEO & Member of the Board of Management

I think a lot has been said and I would come back with something that Deppen-san mentioned that yes, 2 years is longer than we had planned for, but this is something we do with a 10-, 20-, 30-year perspective. And if you think of it like that, then 2 years is not so long. So happy to be here today for this big milestone. And of course, now we continue all the hard work to make sure we set up the company in a very strong position for April 2026.

Unknown Executive  

[Interpreted ] If they have any questions, please raise your hand. The person in the front row in the center, second person.

Unknown Analyst  

[Interpreted ] I'm [indiscernible] Nikkei Business. I have one question to Sato-san. Going forward for Toyota, how I want to ask about how you'll be facing or having a relation with the Hino. So after the company is integrated, then will Hino remain as a group company. And for the Toyota Industry corporations delisting that you have announced taking that company private, you said that the group are going to work together, feed a stronger group. And Hino is a company that will support the transportation of goods as well. So how is Toyota positioning Hino in relation to today's announced framework?

Koji Sato   President, CEO, Operating Officer & Director

[Interpreted ] Thank you very much, [indiscernible] for your question. For Hino Motors and Toyota, the relationship that we have, the history that we have is, as you know, we have been increasing our capital, and that is how we came up to today's relationship. And one reflection that we have is that we, Toyota, are a passenger car business company. And we are not -- as a parent company, we do not have the capacity or the relationship that can lead Hino in the commercial vehicle industry and as this new integrated company is going to be founded, we think that Hino will be able to work in the industry to lead more faster and more flexible.

And Toyota will be supporting Hino, will be very much engaged with Hino in supporting with the technologies and Element technologies. So we will be utilizing and complementing each other with our own strengths. So that will be the relationship going forward for Hino and Toyota.

And also last year, our Chairman, Mr. Toyoda mentioned at the beginning of the year, he announced the Toyota Group Vision. And in there, it was -- he said that the group vision is inventing our path for together. And this vision is -- has been taken to by -- taken back by each of the group companies to think of what kind of path each company is going to event going forward. And we are not united with just 1 target. We have our own aspirations in our respective fields, and we'll have to think of the roles that we will be playing in our respective fields. So that will be the thinking for each group company.

But with this new -- with this announcement, it doesn't mean that Hino will not become an equity method affiliate anymore. That is a fact. So that is something that will be -- we have announced. So just question.

Unknown Analyst  

[Interpreted ] I'm [ Tomikawa ], Mr. Deppen and Mr. Sato earlier talked about the future of commercial vehicles requiring hydrogen mobility to be accelerated. On the other hand, when it comes to the hydrogen, we have a total lack of infrastructure and that remains a major challenge. Now for that gigantic challenge, are there anything that 4 of you can work together to resolve? Deppen-san?

Karl Deppen   Member of the Board of Management

Yes. Thank you, Tomikawa-san. I think with hydrogen, Sato-san elaborated a bit on this already, we are all facing a bit the chicken and egg dilemma because the demand side is always complaining of lack of supply and the supply side is complaining about lack of demand. And I think we have to master the technology from a vehicle perspective, from a customer usage perspective going forward. But at the same time, we need to join forces with other industries, with other companies to overcome these bottlenecks. It is a fact we cannot continue operating like we have done in the past 100 years. And we have to decarbonize the transportation, heavy-duty transportation is a big emitter of carbon dioxide, we know this. And everybody wants his goods transported. So the transportation need is there.

So it is our role to be part of the solution. And by engaging with energy companies, by engaging with infrastructure companies, by engaging also with authorities to organize standardization. Sometimes it's just also the small things, how you fit for the gas station, the filling station, the interface between the vehicle and the charging station, all these things need to be organized and it will take a lot of effort from various companies.

And we are ready to engage in those discussions. And this is why we always open the door for other companies to engage in making this possible and happen. And I think Japan has a lot to build upon. And we are very much confident that we can further pursue it in the next years to come. Thank you.

Unknown Executive  

[Interpreted ] Do you have any more questions? Well, if Sato-san has anything to add, I would appreciate it.

Koji Sato   President, CEO, Operating Officer & Director

[Interpreted ] Well, thank you very much. I cannot agree more with Mr. Deppen. But when it comes to hydrogen-based society, 3 parties have to work together, OEMs like ourselves, station operators and trucking companies altogether have to work together. As off-takers, the consumption has to increase. And OEM also has to contribute. OEMs have to contribute to make the environment to enable that in the stations.

Well, hydrogen cost maintenance cost and operation costs account for majority of the cost over the cost of hydrogen itself. Now as we move on the learning curve, we can revisit the safety specific criteria and standardization with lower management cost as a result. So that's something that we would like to foresee going forward. Thank you very much for your question.

Unknown Executive  

[Interpreted ] Thank you. And since it is getting late, we would like to take the last question. Anyone else with questions? Person in the front row. A person with the blue jacket, please.

Unknown Attendee  

[Interpreted ] I'm Matsuka from Asahi Newspaper. Regarding your -- the bus business, I have 2 questions. So to Deppen-san and also to Ogiso-san, I'd like to ask the question. Right now, J-Bus is a joint venture that Hino has with Isuzu. So how will you handle this business? And also for Mitsubishi Fuso you have an EV bus -- you don't have an EV bus lined up currently. And J -- or you have any ideas of using J-Bus products? Or do you have any ideas of receiving supply from other companies like Hon Hai, they are thinking of supplying the e-bus. Do you think of receiving those buses.

Maybe I start, [indiscernible] that okay. So I'll start with the second part of the question, Mitsubishi Fuso. As you mentioned, Masuko-san, we have no EV bus today yet. We are working on with other partners, but too early to disclose any details. At the same time, we also realized that, of course, the bus industry is already very concentrated in Japan with J-BUS and MFBM, basically only 2 manufacturers are left. So we expect also some concerns from the antitrust authorities, and this is why we are considering how we proceed here.

And it's a natural thing that we talk with different companies to cooperate also apart from Hino or J-Bus because consolidation to one company is very unlikely. So this is something we have to further work on because we also see it's very important that we can provide competitive and effective electric bus solutions for the Japanese market, and this is what we are working on.

Satoshi Ogiso   President, CEO, CHRO & Representative Director

[Interpreted ] So just as Deppen-san has responded, that will also be my answer too. So currently, we do not have any detailed plans like what will happen to J-Bus and what we will do with our products. It is just too early in the timing. We will start -- be exploring various opportunities but Deppen-san and myself, we -- what we both are thinking of is that including both trucks and buses under these new companies, when we think about the management of the new companies, we always want to place importance on developing these new companies being rooted in the Japanese market.

And so when we say the Japanese market, it's not only the trucks, but the Japanese buses will also be important for us. But how we will work on this is something we will consider very carefully step by step after the new company is formed, and our decisions will come in the respective timings.

Unknown Executive  

[Interpreted ] Thank you very much for your response. Thank you, everyone. Thank you, everyone, for the many questions. And since it is time, we would like to end the Q&A session. Can you stand all the participants on the stage? Will you all rise? Thank you very much, everyone, for joining us today and please step down from the stage, please. Once again, ladies and gentlemen, thank you for joining us today despite your occupied schedule. Those in this venue, just inform you, we have a photo session after this. Once we have done the preparations, we will come back. Thank you.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]