Hino Truck Plans Agressive North American Sales Boost

Thursday May 29, 2:29 am ET

TOKYO May 289, 2003; Dow Jones reports that Hino Motors Ltd. said that it aims to more than double its group operating profit over the three years from this fiscal year under its new business plan.

The Japanese truck maker, in which Toyota Motor Corp. has a 50.1% stake, hopes to lift group operating profit to Y42 billion in the fiscal year through March 2006 from Y19.1 billion last fiscal year. It aims to lift group sales 3.5% to Y880.0 billion from Y850.3 billion.

In the domestic market, the truck maker aims to boost sales volume of small trucks 38.3% to 14,000 units in the fiscal year through March 2006. Such an increase would raise Hino's share of the domestic small truck market to 15.0% from 10.6%.

Hino will seek to raise sales volume of domestic mid-size trucks 23.8% to 14, 900 units and sales volume of large trucks 15.4% to 12,300 during the three years.

In overseas markets, Hino will beef up operations in North America and China.

Hino said separately it will tie with Penske Automotive Group Inc. to strengthen its U.S. operations.

Hino said it will boost capital at its 50:50 truck sales joint venture with Mitsui & Co. in the U.S. to $22 million from the current $8 million as Penske Automotive Group will take a 25.0% stake in the venture.

As part of the tie, Penske Automotive Group will lease Hino's trucks and dispatch sales staff to the venture. The venture will also seek to expand its sales channels through the tie.

Hino said it will make its wholly owned unit which currently sells parts in the Central and South American markets a production unit to make parts for Toyota.

Under the new three year plan, Hino aims to boost overseas shipments 62.0% to 41,700 in the fiscal year through March 2006 from last fiscal year.

Last year, Hino said it would seek to raise its U.S. sales volume four-fold to 10,000 units in 2006 from the current 2000 units by launching models with a focus on North American customers.