TRATON AG and Hino Motors Ltd ("Hino") today announced new details on their strategic partnership. Both partners have agreed on two strategic initiatives: to join forces in e-mobility and the plan to establish a procurement joint venture.

On April 12, 2018, TRATON and Hino had agreed to enter a strategic partnership to benefit customers, society, and both partners. Since this agreement, both companies have established working level committees and explored cooperation opportunities in existing and new technologies as well as in procurement. The strategic initiatives announced today are a result of these evaluations.

Yoshio Shimo, President & CEO of Hino Motors, Ltd. said: "The last couple of months have confirmed what we sensed when we announced our partnership in spring 2018: Hino and TRATON share the same motivation of providing highest value for our customers. 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."

Andreas Renschler, CEO of TRATON AG and member of the Management Board of Volkswagen AG, said: "The partnership between TRATON and Hino will be a source of strength for both of us. 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. The cooperation in e-mobility and the establishment of a procurement joint venture is just the beginning."

In e-mobility, TRATON and Hino plan to share their development efforts and market products in shorter time. Hino has a history of more than 25 years in electrified vehicles and the largest running fleet of hybrid commercial vehicles in the world. Also, Hino will start sales of the world's first heavy-duty hybrid truck (Hino PROFIA Hybrid) with AI-based hill anticipation hybrid control system in Japan next year. The partners have complementary approaches: while TRATON is focused on heavy-duty applications, Hino focuses on light- and medium-duty trucks. Joining forces will strengthen the innovation power of the partners.

The future procurement joint venture with balanced rights is planned as a small but powerful entity between both parties, leveraging synergies in purchasing. The planned joint venture aims at realizing synergies in global procurement for existing parts as well as parts for new technologies. More details of the planned joint venture will be outlined in the upcoming months. A corresponding framework agreement has already been signed, filing for antitrust clearance is the next step in the process aiming to establish the joint venture company in latter half of 2019.