VW's Traton Unit Moves Ahead on Hino Deal, Mulls IPO

Volkswagen AG’s commercial truck and bus unit, which was renamed Traton AG last month, has signed a framework agreement to create a purchasing joint venture with Japan’s Hino Motors Ltd.

The companies, which announced a strategic partnership earlier this year, expect to finalize the venture in the second half of 2019. The new company would integrate Traton and Hino’s purchasing activities for traditional components and those related to emerging technologies.

The companies also have agreed to work together on electrification systems to help reduce costs and shorten development times. Hino, which introduced its first electrified truck 25 years ago, claims to have the world’s largest fleet of hybrid commercial vehicles.

Separately, VW says it has taken the initial steps to prepare Traton for a public stock offering to help the unit to better compete against larger rivals such as Daimler and Volvo. But a final decision regarding the IPO hasn’t been made, company officials said at this week’s IAA truck show in Hannover.