Hino, Volkswagen to Team Up in Commercial Vehicle Biz

Tokyo, April 12 (Jiji Press)--Hino Motors Ltd. <7205> and major German automaker Volkswagen AG said Thursday they have agreed to consider a comprehensive strategic partnership in the field of commercial vehicles, such as trucks and buses. The two companies will discuss possible cooperation in the development of electric vehicles and other environmental technologies, as well as in the field of information technology, including autonomous driving. While Toyota Motor Corp. <7203> and Volkswagen are in fierce competition in the passenger car market, Hino, a Toyota subsidiary, and Volkswagen will aim to work together in commercial vehicle development. Speaking at a press conference in Tokyo, Hino President Yoshio Shimo and Andreas Renschler, chief executive officer of Volkswagen Truck & Bus GmbH, the German automaker's commercial vehicle unit, said their companies will aim to build a long-term cooperative relationship. Details of their potential cooperation will be worked out at a committee comprising senior officials of Hino and Volkswagen Truck & Bus, Shimo and Renschler said. "Utilizing Hino's strength of being a member of the Toyota group, we hope to lead the world with advanced technologies," Shimo said, suggesting that the company's partnership with Toyota will remain unchanged. In addition to cooperation in advanced technologies, Hino and Volkswagen will work together in the development of internal combustion engines, including diesel engines, as well as global production and sales. The two company's possible cooperation may develop into a complementary collaboration covering a wide range of fields, Renschler said. The world's business environment for commercial vehicles is going through major changes due to tougher emissions regulations and the growing presence of Chinese automakers. Hino and Volkswagen will aim to reduce costs and improve their competitiveness by sharing some of their management resources, officials said. END