Japanese news services have reported that Toyota Motor Corp. plans to pay $542 million to raise its stake in Hino Motors Ltd. and appoint its own executive as president, assuming tighter control of Japan's largest truck maker. Hino has not made an official announcement.
The Japanese automaker’s stake in Hino would be boosted to 50.1% from 36.6% with the purchase of 122.3 million new shares to be issued by Hino in a private placement. According to the report, the purchase will be voted on during a board meeting in June and should be completed on August 30.
According to the report, Tadaaki Jagawa, an executive vp with Toyota, will become Hino's next president, replacing Hiroshi Yuasa, who will become a senior adviser on Hino’s board.
While the purchase is still speculative, Ted J. Fick, vp of U.S.-based Hino Diesel Trucks Inc., said an increase in Toyota’s stake would be good for Hino.
“If it comes to pass, positive results should be felt through the company because of Toyota’s strengths,” Fick told Fleet Owner. “I think they will help us with the brand image and awareness here that makes us so successful in Asia, Australia and Africa.”
Fick added that the deal would most-likely involve changes in Hino’s senior management, as Toyota may send some its own managers in as replacements.