Archion to reduce truck sites in Japan from five to three

Archion’s FY32 targets are based on an integration that should resolve its compliance legacy while establishing a new technical foundation Archion Corporation plans to reduce its Japanese truck manufacturing network from five facilities to three by the end of 2028 as part of an integrated platform strategy covering heavy, medium and light-duty truck development. The Group has set an operating margin target of over 10% and a return on equity of 15% in FY2032. The retained facilities will be factories in Kawasaki, Koga and Nitta. Archion aims to consolidate development, procurement and logistics functions across Hino Motors and Mitsubishi Fuso Truck and Bus, reducing duplicative investments and creating rework for zero-emission vehicle (ZEV) and advanced technology development. Archion’s two largest shareholders are Daimler Truck AG with 44.25% of the listed shares and Toyota Motor Corporation with 37.45%, giving the two groups a total stake of 81.7%. The group’s medium-term business plan, submitted on 15 May 2026, sets operating profit and free cash flow key performance indicators (KPIs), which will also determine executive remuneration. The filing addresses ongoing compliance remediation efforts at Hino Motors following engine certification abuse disclosed in March 2022. Hino has since achieved ISO 9001 certification, which covers engine design and certification application processes, and is running an external consultant review program as part of contractual obligations in the US. Archion’s nine-member board includes four independent outside directors and a majority-independent Audit and Audit Committee. No executive compensation has been paid as of April 1, 2026, when the company officially began operations.