| | |  Business News | August 2008 
Japan's Hino Plans to Build Truck Factory in Mexico
 Kiyori Ueno - Bloomberg
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Hino Motors Ltd., Japan's largest maker of heavy trucks, said it will build a factory in Mexico to boost international sales as domestic demand wanes.
The factory in Guanajuato, Mexico, will have annual capacity of 1,200 vehicles and will start operations in July 2009, the company said in a statement today.
Hino, 50 percent owned by Toyota Motor Corp., is looking to expand outside of Japan as domestic demand from bus and transport companies fall amid record oil prices. The company, which sold 272 trucks in Mexico last fiscal year, aims to sell 1,000 there this fiscal year, spokesman Yoshihiro Udagawa said.
Tokyo-based Hino will hold an 80 percent stake in the operation through Hino Motors Manufacturing Mexico, a joint venture with Mitsui & Co., Japan's second-largest trading house. Hino will invest $7.2 million in the venture while Mitsui will spend the remaining of $1.8 million, according to Udagawa.
Sales of the company's Dutro truck and other models fell 5.6 percent in Japan last quarter. In contrast, Hino boosted sales by more than 40 percent each in Asia outside Japan, the Middle East and Central and South America.
Hino rose 0.9 percent to 558 yen as of 2:43 p.m. in Tokyo Stock Exchange trading. They have fallen 23 percent this year.
To contact the reporter on this story: Kiyori Ueno in Tokyo at kueno2(at)bloomberg.net |
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