Hino Motors: To produce core parts in Japan and peripheral parts by region

Investments to plants in Japan, Thailand and Indonesia

2014/07/24

Summary
Manufacturing innovation for efficient high-mix low-volume production
Refurbishing plants in Japan as part of global production restructuring plan
Global unit sales: to increase sales outside Japan through FY 2015
Record-high profit in FY 2014; revenue and profit to decline in FY 2015

Summary

Global unit sales This report focuses on Hino Motors' recent movements and production strategy. Hino is carrying out the global production innovation to manufacture a wide variety of products in small quantities more efficiently. Plants in Japan will concentrate on producing globally common "core parts." Market-specific peripheral parts will be produced in regional core production bases in Thailand and Indonesia. At the same time, Hino is seeking highest efficiency in meeting diverse needs by a modular approach.

In Japan, Hino is constructing a new Koga Plant. Hino first started construction of a factory for producing knockdown (KD) parts at the Koga Plant and launched its operations in May 2012. The KD production was transferred from the Hino Plant. Hino is also constructing a new machining plant in Nitta Plant that produces units. The new machining plant will start operations in the first half of FY2015. Outside Japan, Hino is beefing up plants in Thailand and Indonesia.

Hino will invest JPY 89 billion in plant and equipment in FY 2015, up 34.4% year-over-year (y/y), to refurbish the Koga and Nitta plants in Japan. The company will invest JPY 52 billion in R&D, up 12.3% y/y, to promote modularization, development of regionally best-fit vehicles, and safety systems.

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