Hino, Isuzu Manufacturing Operations to be Combined

Toyota is discussing options on how to possibly combine manufacturing operations in North America of Hino Motors Ltd. and Isuzu Motors Ltd. It is not yet clear whether the discussion will lead to the merging of the two truck manufacturers but according to statement released by Toyota executives in separate interviews, the Japanese automaker would like to create synergies between the two commercial truck producers. In short, combine manufacturing operations of the two truck companies in terms of building big medium and heavy duty trucks and afterwards developed a demand for them.

At present Hino has two manufacturing sites in North America, one located in Long Beach, California while the other one is in Woodstock, Ontario—combined these two sites produced 10,000 trucks for sale per year.

The company has announced its plan of building a plant in Williamstown, W. Va., which would produce medium and heavy-duty trucks with an annual growth of 2,500 vehicles.

Isuzu is exporting big inter-city delivery trucks from Japan to North America. However, Toyota thinks that its more efficient to produce these trucks locally in North America especially once sale starts to grow.

Toyota executives believe that the separate manufacturing operations of both Isuzu and Hino in North America are risky and redundant. Toyota owns 50 percent stake in Hino and about 5.9 percent equity stake in Isuzu.

Currently Isuzu and Toyota, the maker of Toyota strut bellows are studying ways on how they would develop and produce small advanced clean diesel engines for both passenger cars and light-duty trucks.

Toyota has not yet reached that point but pointed out that such discussions would follow after Toyota and Isuzu know they would collaborate with regards to the advanced diesel engine technology.