New strategy aims at increasing global procurement footprint
The Traton Group, manufacturer of Volkswagen’s commercial vehicles, and Hino Motors, Toyota’s equivalent in Japan, have extended their strategic partnership to include a joint-procurement venture.
Called Hino and Traton Global Procurement, the company aims to maximise procurement synergies between the two entities, targeting a wide range of parts and technologies. Spokesmen for the venture say they anticipate an increased global footprint – particularly in Europe and Asia – resulting from an expanded supplier base.
Yoshio Shimo, CEO of Hino Motors, says the venture represents a milestone in the partnership between the two companies. “The agreement enables Hino to offer appropriately priced products that meet customers’ needs faster. We are also in talks with Traton about additional areas of collaboration, including electric mobility.”
Andreas Renschler, CEO of Traton SE, says the partnership is important from a strategic perspective, with customers benefiting from a large base of suppliers. He says Traton holds a 51-percent stake in the new company, while Hino holds 49 percent. Offices will be set up in both Munich and Tokyo.
In 2018, Hino and Traton signed an agreement to establish a mutually beneficial, strategic long-term partnership based on offering customers highest value in terms of existing and new technologies.