Hino Motors (TYO:7205) will lose most of Toyota Motor's (TYO:7203) backing following its merger with Mitsubishi Fuso Truck and Bus, as the two integrate under a new holding company, Archion, set to list in April, Nikkei reported Wednesday.

Toyota's 50.1% stake in Hino will shrink to 19.9% in Archion, ending Hino's status as a Toyota subsidiary. The move will tighten Hino's funding environment, as it has relied heavily on Toyota for loans and contract manufacturing, according to the report.

Hino, which posted a 217.7 billion yen net loss for the year ended March 2025, will sell its Hamura plant to Toyota for about 150 billion yen and use the proceeds to repay loans. The merger leaves both Hino and Mitsubishi Fuso without the support of their current parent companies, Toyota and Daimler Truck, respectively, raising investor concerns about the new entity's competitiveness against rival Isuzu Motors, the report said.

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