Hino, Scania in joint venture to develop engine technologies, expand truck sales

TOKYO (April 11, 2002) — Hino Motors Ltd. and Scania AB of Sweden have agreed on a business alliance that includes jointly developing engine technology.

Initially, Hino will sell Scania’s tractors in the Japanese market under the Hino brand name. The companies also will jointly study the feasibility of putting Hino’s engines with a 7-8 litre displacement in Scania products, and will begin exchanges on emission control technologies.

The agreement does not involve any capital participation or mutual shareholding, the companies said.

Toyota Motor Corp. owns 50.1% of Hino, while Volkswagen AG is Scania’s largest shareholder with a 34.0% stake.

Last year Scania sold 32,000 units in Europe and 6000 in Latin America, but the company has little presence in Asia. Scania is Europe’s third largest maker of trucks and buses after DaimlerChrysler AG and Volvo AB. Hino is the largest truck manufacturer in Japan.

The alliance is expected to allow the two truck makers to reduce investment costs for developing environmentally friendly diesel engines, said Alan Masters, vice-president of Hino Diesel Trucks Canada Ltd., based in Mississauga, Ont. “This agreement demonstrates that Hino is energetically pursuing alliances to ensure that we are competitive and remain on the leading edge of technological advances,” Masters explained. “The pooling of know-how in emission control technology, to further reduce the environmental impact of diesel engines will be a great additional benefit.”