Commercial vehicle manufacturers Traton Group and Hino Motors have established a procurement joint venture to maximize the global procurement synergies between the two companies.
The procurement partnership targets a wide range of parts and technologies where purchasing contracts are made by the two companies. Through this partnership, Hino and Traton expect to see an increased global footprint, particularly in Europe and Asia, resulting in an expanded supplier base.
“The joint venture is a key milestone of our strategic partnership. It enables Hino to offer products that meet customers` needs faster and appropriately priced,” said Yoshio Shimo, president and CEO of Hino. “We are also in talks with Traton about additional areas of collaboration announced in September 2018, which also aims to join forces in the area of electric mobility.”
Back in 2018, Hino and Traton signed an agreement, aiming for a mutually beneficial strategic long-term partnership. Both companies agreed to explore each other's capabilities to cooperate in existing and new technologies as well as in procurement.
Traton holds a 51% stake and Hino 49% in the partnership and the joint venture will have offices both in Munich and Tokyo.
“The partnership with Hino is important for our Global Champion Strategy which we continue to determinedly execute,” said Andreas Renschler, CEO of Traton. Our customers are going to benefit from an even larger basis of suppliers.”
Originally posted on Trucking Info