Hino enters partnership with Volkswagen Truck & Bus

Hino Motors, ltd. and Volkswagen Truck & Bus have signed an agreement aiming to build a mutually beneficial strategic long-term partnership.

Both companies say they will further explore each other’s capabilities to co-operate in logistics and research, existing and new technologies as well as in procurement.

The co-operation will focus on conventional powertrains, hybrid and electric powertrains, as well as connectivity and autonomous driving systems.

“We can join forces and spend R&D money only once instead of twice or three times,” Volkswagen Truck & Bus CEO Andreas Renschler said at the announcement.

“We see potential to save on our budgets and also to combine our resources to be faster at bringing products to market than we would be alone,” Renschler added.

Both partners aim to boost their positions in the global transportation business and will jointly develop technologies to offer customers the highest value. A joint Alliance Board has been set up based on the SCFA to discuss the direction of the long-term partnership.

The Alliance Board comprises the CEOs from both companies as well as additional senior management representatives. Among other things, the Alliance Board will explore and evaluate co-operation in existing technologies, such as whether there is room for jointly using conventional powertrains to offer better products for customers.

Yoshio Shimo, President & CEO of Hino Motors said: “This agreement was made possible because Hino Motors and Volkswagen Truck & Bus respect each other and share the same aspiration to offer customers the highest value.

“Hino Motors invented the company slogan ‘Trucks and Busses that do more’. To do justice to that, Hino Motors will pursue regional business co-operation and joint utilisation of technologies with Volkswagen Truck and Bus to offer customers better products and ultimately customised total support.

“It will also be a strong tie-up at times of new challenges in the field of transportation due to the rapid growth of e-commerce,” he concluded.

Renschler, added: “We are delighted to enter into the SCFA with Hino Motors as we are teaming up with one of the leading truck and bus companies, whose presence is especially strong in Asia.

“It is an excellent fit in terms of regional footprints and products, but also concerning common ideas on how to shape the future of transportation together.”

Hino has a strong presence in Asia and the Japanese markets and provides products to over 80 countries and regions including the USA.

Volkswagen Truck & Bus features leading market positions in Europe and Brazil through its strong brands MAN, Scania, Volkswagen Caminhões e Ônibus and RIO. The company has also established partnerships with Navistar in North America and Sinotruk in China.

The Volkswagen/Hino tie-up comes after Volkswagen bought a 16.6 per cent stake in Navistar in 2016 with an eye to buying all of the U.S. truck manufacturer.