Hino Motors announces plans for increasing global production structure

According to the latest financial results for Hino Motors Ltd., global unit sales reached a record-breaking high in FY2014 thanks to all-time sales highs in five overseas markets (note Asia is excluded from the list where sales remained stagnant). 

And while the truck manufacturer is only forecasting about 2% growth in the overall truck and bus market this year, the aim will be to increase sales volume and market share by increasing global production and supply capability for the upcoming coming years.  Expect big things from Hino Motors in the foreseeable future.

As part of the process for establishing a global production structure, the company announced earlier this year they plan on consolidating all engine production to the Nitta plant in Gunma, Japan. That plant currently supplies all the small to medium range of Hino diesel engines and is due to start large engine production in mid 2016.

Subsequent to that announcement are plans to invest up to $8 million to expand its truck assembly facility in Williamstown, West Virginia, where they will be adding 30,000 square feet to its existing 200,000 squre foot plant with the addition of a dedicated training facility dubbed as a "dojo building" as well as a stand-alone quality control testing center and new employee break room. 

In conjunction with optimizing their global supply and production infrastructure, Hino is also engaged in the development of a modularised "market best-fit products" strategy where the components of Hino trucks and buses are being divided into two categories: 

• Core parts (the core parts essential for manufacturing a Hino vehicle)

• Peripheral parts (the peripheral components which can be adapted to customize a vehicle to meet specific customer requirements throughout different regions of the world)

The Nitta plant will be the main facility for the manufacturing of these two categories and will supply these components to the Koga plant as well as to their overseas assembly plants.

Koga already serves as the supply base for knock-down (KD) kits for building Hino trucks and buses outside of Japan as well as being the main assembly plant for medium and heavy trucks and buses. It will also soon be the source for chassis frames, axles and cabs.

The upgraded Koga plant is due to start full-scale production in 2017.

"Through the optimization of these production and supply structures, Hino aims to improve productivity and logistical efficiency, and also to respond flexibily to the needs of the market so that we are able to effectively contribute to our customer's business and continue to be the brand of choice," said Yasuhiko Ichihashi, President of Hino Motors. "These major developments will enable us to respond flexibily to the needs of the global market."