NEWS RELEASE

Sep 28, 2017

Hino Motors Moves Forward with Local Production in the US

-New plant produces planned 9-liter engine models in 2019-

   Hino Motors, Ltd. (hereinafter referred to as “Hino”) has decided to invest in further production localization in the US. Hino plans to enhance its efficiencies by consolidating its production processes through the acquisition of facilities neighboring our West Virginia plant, and also plans to locally produce cabs. The new plant is to produce new models planned in 2019, additionally. This will be part of Hino’s efforts to boost its competitive edge in the US, which is a key market for ensuring sustainable growth.

   Hino positions North America and South America as one of its three pillars for sustainable growth―the other two being Japan and Asia―and continues to focus on strengthening its operations in the region with respect to providing “Market best-fit Products” and “Total Support”. As part of its “Market best-fit Products” approach in the US, Hino has worked towards providing products that meet customers’ needs at the optimal timing by enhancing our product lineup and moving forward with greater localization.

   As part of these efforts to achieve greater production localization, we have reached the decision to acquire facilities that neighbor our West Virginia plant. Our first step will be to consolidate production processes that are scattered in the vicinity near our current plant to improve our efficiencies. The next step will be to transfer the production of North American spec cabs currently being produced in Japan to the plant. Through these actions, we aim to shorten our product supply lead times, establish a setup that takes into account future sales growth, and boost our competitive edge. This investment is estimated to be approximately 100 million dollars. New plant begins its operation in early 2019, and local cab production is scheduled to follow. Two-shift operation starting in early 2020 creates approximately 250 new jobs. Additional jobs will be created with starting cab production etc.

   Hino will provide our diverse range of customers with “Market best-fit Products” that meet their needs in a timely fashion. We will also enhance our “Total Support” operations―which help improve our customers’ up times―and take approaches that will help Team Hino establish firm roots in our local communities so that we are able to grow together with our US customers as their partner.

 

<Investment Details>

Current After
production process consolidation and
cab production localization
Location Williamstown,
West Virginia
Mineral Wells,
West Virginia
Property area Approx. 126,000 m2 Approx. 378,000 m2
Production
capacity
12,000 units/year
(with one-shift)
24,000 units/year
(with two-shifts)
Employees Approx. 280
(as of end of March 2017)
1. create approx. 250 with two shifts operation
2. create additionally with cab production etc.

 

<Reference: Overview of Hino’s US operations>

= Production Company

Name Hino Motors Manufacturing U.S.A., Inc.
HQ address Farmington Hills, MI
Founded 1994
President Takashi Ono
(Hino Motors Managing Officer)
Capital composition Hino Motors, Ltd.: 100%
Operations Manufacture of Hino vehicles, sales of supply parts, and
manufacture of automobile parts.
Production capacity* 12,000 units/ year
Production results* FY2014: 8,945 units
FY2015: 10,438 units
FY2016: 8,077 units
Offices West Virginia plant, Arkansas plant
Employees 1,213 (as of end of March 2017)

 *Hino vehicles production at West Virginia plant

= Sales Company

Name Hino Motors Sales U.S.A., Inc.
HQ address Novi, MI
Founded 1981
President Yoshinori Noguchi
(Hino Motors Senior Managing Officer)
Capital composition Hino Motors, Ltd.: 50%,
PCP Holdings: 25%, Mitsui & Co., Ltd.: 25%
Operations Sales of Hino trucks and supply parts, and after sale services
Sales results FY2014: 10,035 units
FY2015: 12,044 units
FY2016: 11,227 units
FY2017 (planned): 12,800 units
Employees 144 (as of end of March 2017)

 End of release