Traton AG, the new name for Volkswagen Commercial vehicle, and Hino Motors Ltd has today announced new details on their strategic partnership. Both companies have agreed on two strategic initiatives: to join forces in e-mobility and the plan to establish a procurement joint venture.
Traton and Hino agreed to enter a strategic partnership on 12 April this year saying the tie up was‘to benefit customers, society, and both partners’.
The statement from the companies said that since this agreement, both companies have established working level committees and explored cooperation opportunities in existing and new technologies as well as in procurement and goes onto say that the strategic initiatives announced are a result of these evaluations.
Yoshio Shimo, president and CEO of Hino said that the last couple of months have confirmed what they sensed when they announced the partnership earlier.
“Hino and Traton share the same motivation of providing highest value for our customers,”said Yoshio san.
“I am delighted that we made good progress in the field of e-mobility and procurement, with every new meeting, I gain confidence that we are moving in the right direction to strengthen our relationship of trust and to pursue further possibilities,“ he added.
The CEO of Traton AG and member of the management board of Volkswagen AG, Andreas Renschler, said that the partnership between Traton and Hino will be a source of strength for both of companies.
“Our sector is changing, together, we will be able to shape the ongoing transformation of transportation, our partnership is taking concrete shape, and we are continuously identifying new opportunities,”said Renschler.
“The cooperation in e-mobility and the establishment of a procurement joint venture is just the beginning.” he added
In e-mobility, Traton and Hino plan to share their development efforts and market products in a shorter time.
Hino claims to have a history of more than 25 years in electrified vehicles and the largest running fleet of hybrid commercial vehicles in the world.
Hino will also start selling the world’s first heavy-duty hybrid truck, the PROFIA Hybrid in Japan next year.
The partners say they have complementary approaches, with Traton focused on heavy-duty applications and Hino focusing on light- and medium-duty trucks. The companies claim that joining forces will strengthen the innovation power of both partners.
The future procurement joint venture with balanced rights they claim is planned as a small but powerful entity between both companies, leveraging synergies in purchasing. The statement said the planned joint venture aims to realise synergies in global procurement for existing parts as well as parts for new technologies.
The companies say that more details of the planned joint venture will be outlined in coming months.
A corresponding framework agreement has already been signed, while filing for antitrust clearance is the next step in the process aiming to establish the joint venture company in the latter half of 2019.