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Hino Motors Ltd. and Scania AB of Sweden said Monday the truck and bus manufacturers have signed a long-term comprehensive tieup to increase their competitive edge in the global market.

Under the agreement, the two firms will discuss marketing Scania’s tractors under the Hino brand in Japan and the possibility of supplying Hino’s 7- to 8-liter engines to Scania, the firms’ leaders said in Tokyo.

The firms will also exchange technologies for emissions control, they said, adding the agreement does not include a capital tieup.

Scania, the third largest heavy duty truck maker in the world, will be a newcomer on the Japanese market. The Swedish firm, whose stakes are held by Volkswagen AG, Volvo and others, has focused on Europe and Latin America.

Hino, a subsidiary of Toyota Motor Corp. and manufacturer of light and heavy-duty trucks, is strong in the domestic and Asian markets.

“We cannot expect growth in the domestic market, but since our product lineups and markets are different, we can complement each other in various markets that are growing,” said Hino President Tadaaki Jagawa.

He added that the tieup will allow both companies to cut costs as well as increase cost competitiveness.

Jagawa said South Asia and China are among the markets on which the firms will focus.

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