Hino To Cut Number Of Platforms 65% By 2005 To Trim Costs

TOKYO -Dow Jones reported that Hino Motors Ltd., a major Japanese truckmaker, will reduce the number of its truck platforms to 70 by 2005 from 200 at present, aiming to cut product-development costs by around 30%, the company said Monday.

The subsidiary of Toyota Motor Corp. expects the platform consolidations to lead to a decrease in the number of component types Hino uses to assemble trucks to 6,000-7,000 units from about 20,000.

Hino expects a fall in development costs to help it achieve a group operating margin of 4.3% in the fiscal year ending March, 2005, compared to 1.2% in fiscal 2001, a company spokesman said.

Hino's plan comes as Japanese truckmakers accelerate efforts to slim their cost structures as domestic demand for trucks has repeatedly disappointed already-bearish truckmakers recently.

In January-September, sales of new trucks in Japan fell 22.2% on year to 635, 074 units, hurt by reduced public works and decreased private-sector business activity.

Among other truckmakers, Nissan Diesel Motor Co. last month announced steps to cope with worse-than-expected domestic market conditions.