Blog

Feb 19, 2025

Hino Motors to close Arkansas plant, lay off 1,300 workers | Manufacturing Dive

The truck and engine manufacturer plans to close its largest U.S. plant as it exits the auto parts business. Courtesy of Toyota Motor Corp. Hino is evaluating the impact costs of shuttering the

The truck and engine manufacturer plans to close its largest U.S. plant as it exits the auto parts business.

Courtesy of Toyota Motor Corp.

Hino is evaluating the impact costs of shuttering the facility and withdrawing from the auto parts business, according to the statement.

The company noted in its closure announcement that "recovering sustainable profitability is difficult," in the auto parts business, pushing it to withdraw from the segment. The company's auto parts operating profit was down 29.5 billion yen in fiscal year 2024, which ended March 31.

SUV and light-duty truck sales for Hino’s parent company, Toyota Motor Corp., decreased to approximately 104,300 units, down 18.4% from last fiscal year’s 127,900 units.

The truck and auto part maker is looking at ways to cut costs as a result of the losses, as well as improve productivity and competitiveness, Hino said in the earnings report.

Hino’s Marion facility produces rear axles, knuckles and suspension components for Toyota’s Tundra and Sequoia models, according to the company’s website. The Hino plant also makes side rails and engine rods for its medium-duty trucks and diesel engines.

While the company is working to cut costs, it’s also in the midst of a merger with fellow Japan-based truck manufacturer Mitsubishi Fuso Truck and Bus Corp. The two companies will combine “on equal footing,” with parent companies Daimler Truck and Toyota Motor also equally invested in the deal, which is still pending approval, according to a February 2024 announcement.