Scania Changing Its Relationship with Hino

Sweden—June 24, 2011: Regulatory News:

“Today there is already major sales potential for Scania’s industrial engines in these segments”

Scania has established a sales and service company in Japan. This implies changes in Scania’s alliance with Japanese truck and bus manufacturer Hino.

“The exchange of knowledge at the strategic level that we have enjoyed over the years with Hino has been valuable, for example in emissions and hybrid technology, but we have jointly decided to limit our future cooperation to a customer-supplier relationship,” says Martin Lundstedt, Head of Franchise and Factory Sales at Scania.

In this new relationship, Scania -- backed up by Hino -- will remain as distributor of Hino’s medium-duty trucks in South Korea, with responsibility for sales and service. Since 2007, Scania Korea Ltd. has delivered about 1,000 of Hino’s trucks.

In Japan, Hino -- backed up by Scania -- will retain responsibility for providing parts and service for the approximately 400 Scania tractor units that the company delivered in this market between 2003 and 2010.

In establishing its own sales and service company in Japan, Scania will initially concentrate on increasing sales of vehicles in niche segments, including the very heaviest truck segment.

“In the short term, our greatest potential lies in sales of special vehicles, such as tractor units for heavy road transport. Domestic manufacturers produce only a limited range of such vehicles. Through own organisation, with its extensive knowledge of Scania’s modular product system, we can offer special vehicles tailored for the Japanese market,” says Sol Bong Chai, Managing Director of Scania Japan Ltd.

Because of the deficiencies in Japan’s infrastructure that arose following the tsunami disaster, there is a sharply increased demand for back-up generator sets for electricity supply, as well as industrial equipment for use in reconstruction work.

“Today there is already major sales potential for Scania’s industrial engines in these segments,” concludes Mr Chai.

Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. Service-related products is a growing proportion of the company’s operations, assuring Scania customers of cost-effective transport solutions and maximum uptime. Scania also provides financial services. Employing some 35,500 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2010, net sales totalled SEK 78 billion and net income amounted to SEK 9.1 billion.