Hino Motors and Volkswagen Truck & Bus GmbH have formed a strategic long-term partnership to enhance their respective market positions in the global transportation business. Through this partnership, they will jointly develop innovative technologies to offer customers the highest value.
Based on their common ideas, both companies will further explore each other’s capabilities to cooperate in logistics and traffic solution research, existing and new technologies as well as in procurement where cost-savings can be achieved. The evaluation of technology cooperation will focus on conventional powertrains, hybrid and electric powertrains, as well as connectivity and autonomous driving systems.
A joint Alliance Board has been set up to discuss the direction of the long-term partnership. The Alliance Board pursues a pragmatic approach with a lean organization and balanced rights for both companies that remain independent. It comprises the CEOs from both companies as well as additional senior management representatives.
Among other things, the Alliance Board will explore and evaluate cooperation in existing technologies, eg whether there is room for jointly utilizing conventional powertrains, to offer better products for customers. Furthermore, it will also evaluate initiatives for future transportation technologies.
“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 Buses that do more’. To do justice to that, Hino Motors will pursue regional business cooperation and joint utilization of technologies with Volkswagen Truck and Bus to offer customers better products and ultimately customized 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,” said Yoshio Shimo, President & CEO of Hino Motors.
By joining forces in a strategic partnership, Volkswagen Truck & Bus and Hino Motors will be able to expand their respective global footprints and get into a superior position to tackle the challenges of the industry. Hino has a strong presence in Asia and the Japanese markets and would be able to help VTB gain a bigger presence while VTB’s leading market positions in Europe and Brazil (through its brands MAN, Scania, Volkswagen Caminhoes e Onibus and RIO) will be useful to Hino.
This is the first time that that a Toyota Group subsidiary is collaborating with Volkswagen although it is not the first time Toyota has had business dealings with the German carmaker. Between 1989 and 1997, Volkswagen Commercial Vehicles had a deal with Toyota for the supply of the Hilux (fifth generation), which it assembled in Germany and called the Volkswagen Taro.