Truck maker Hino Motors Ltd. said Thursday it has formed a capital alliance with U.S.-based major leasing firm Penske Corp. to start full-fledged operations in North America.
Under the agreement, Penske, which leases commercial vehicles, will hold a 25 percent stake in Hino's sales unit based in New York state. Hino will have a 50 percent stake and trading house Mitsui & Co. will hold the remainder.
Hino and Penske will cooperate in the leasing business and the opening of more sales outlets in the United States, company officials said.
Hino, a subsidiary of Toyota Motor Corp., plans to increase its New York unit's capital from the present $8 million to $22 million.
Currently the sales unit, Hino Diesel Trucks (U.S.A.) Inc., is owned equally by Hino and Mitsui.
It sells about 2,000 trucks annually in the U.S. The company's name will be changed to Hino Motors Sales U.S.A. Inc.
Hino President Tadaaki Jagawa said the alliance will help Hino become the world's No. 5 truck maker, in terms of trucks with load capacities of 3 tons or more, by 2010.
Hino plans to start making trucks in the U.S. in October 2004 and expects annual sales there to hit 10,000 units by 2006 and 30,000 units by 2010.
Under a midterm management plan through fiscal 2005, Hino said it hopes to double its consolidated operating profit of 21 billion yen in 2002 in three years and increase group sales by 3.5 percent to 880 billion yen.
Its domestic sales are expected to rise 24.8 percent over 2002 figures to 43,500 units in fiscal 2005, while overseas sales are estimated at 41,700 units, up 62 percent.