Traton and Hino strengthen joint venture

The two commercial vehicle giants have formed a separate company aided at offering customers the highest value through enhanced buying power.

The two companies have established the procurement joint venture Hino & Traton Global Procurement in order to maximize the global procurement synergies between the two companies.

The joint procurement targets a wide range of parts and technologies whose purchasing contracts are made by the two companies. Through this partnership, Hino and Traton anticipate an increased global footprint, in particular in Europe and Asia, resulting in an expanded supplier base.

“The joint venture is a key milestone of our strategic partnership. It enables Hino to offer products that meet customers' needs faster and appropriately priced. We are also in talks with Traton about additional areas of collaboration announced in September 2018, which also aims to join forces in the area of electric mobility,” said Yoshio Shimo, President & CEO of Hino Motors, Ltd.

Andreas Renschler, CEO of Traton SE and Member of the Board of Management of Volkswagen AG added: “The partnership with Hino is important for our Global Champion Strategy which we continue to determinedly execute. Our customers are going to benefit from an even larger basis of suppliers.”

Traton holds a 51 per cent stake and Hino 49 per cent, and the joint venture will have offices both in Munich and Tokyo.

Back in 2018 Hino Motors, Ltd. and Traton signed an agreement, aiming for a mutually beneficial strategic long-term partnership.

Based on their shared ethos to "offer customers the highest value", both companies agreed to explore each other's capabilities to cooperate in existing and new technologies as well as in procurement.

Traton Group owns brands including MAN, Scania, Volkswagen Truck and Bus and Rio.

Hino Motors, Ltd. is a Toyota Group company selling over 200,000 trucks and buses in more than 90 countries in 2018.