We hereby announce that at the Board of Directors meeting held on May 31, 2024, we decided to withdraw from the parts business at HMM(*) Arkansas plant.
(*)HMM：Hino Motors Manufacturing U.S.A. Inc.
1. Reasons for Business Withdrawal
Regarding the parts business, we have concluded that recovering sustainable profitability is difficult, and thus have decided to withdraw from this business.
2. Outline of Business Withdrawal
1)Businesses to be withdrawal
Automotive parts business at HMM Arkansas plant
2) Results of the parts business for the Fiscal Year Ending March 31, 2024
| The parts business, (a) (Billions of yen) | Consolidated results of FY 2024 (From April 1, 2023 to March 31, 2024) (b) (Billions of yen) |
Ratio(a/b) |
|
| Net Sales | 81.1 | 1,516.3 | 5.3％ |
| Operating profit | -29.5 | -8.1 | – |
3) Schedule
HMM Arkansas plant will be closed by the end of 2027, and we will withdraw from the parts business.
4) Handling of Assets and Employees treatment associated with Parts Business Hino will proceed with consideration and sincerity on employees’ treatment. Regarding the handling of assets, we will continue to proceed with deliberations.
3. Future Outlook
The transfer of non-current assets, etc. upon the plant closure has not yet been decided and we are currently assessing the impact of withdrawing from the parts business on our performance. We are also assessing our performance in the fiscal year ending March 2025. Any matters requiring disclosure will be promptly communicated.
[Reference]
- HMM Arkansas plant Overview
- Location: 100 Hino Blvd. Marion, Arkansas, U.S.A
- Production start date: October 2006
- Number of employees: 1,300 (as of March 31, 2024)
- Business: Production of automobile parts.
- HMM Company Overview
- Name: Hino Motors Manufacturing U.S.A. Inc.
- Representative: Davey Jung
- Establishment: November 1994
- Capital: 1,626 USD
- Shareholding ratio: 100% Hino Motors, Ltd.
- Business: Manufacturing for Hino, sales of service parts for Central and South America, manufacturing of automotive parts
- Locations: Head office in Detroit
West Virginia Plant (production of medium-duty trucks)
Arkansas plant (Automotive parts production) - Number of employees: Approximately 1,900 (as of March 31, 2024)
(Detroit headquarters and others: 200; West Virginia plant: 400; Arkansas plant: 1,300)
SOURCE: Hino
