Hino could fill void left by GM
By Jody Murphy, Special to The TimesGeneral Motors' decision to cease production of its medium-duty trucks could be an opening for Hino Motors.
Last month, GM, which recently filed for bankruptcy protection, announced in early June it was ceasing production of its medium-duty truck line by July 31.
Sandy Ring, general manager of external and legal affairs for Hino Motors Manufacturing USA, said the news could be a positive for Hino.
"It creates some gap in the marketplace," he said.
Tim Matheny, president of Matheny Motors, said GM's decision has affected about 450 medium-duty truck dealers nationwide, including Matheny Motors.
"It was a significant event for our dealership," he said.
"It is an opportunity for Hino, along with the remaining dealers," Matheny added. "Hopefully, it will be a great opportunity for Hino."
Hino's Williamstown facility is the company's only truck facility in the United States. The company, a division of Toyota, also has a plant in Canada and another in Mexico that is expected to begin operations soon.
Matheny said GM will dissolve franchises over the next 18 months. By October 2010, the company will establish some service points to support the trucks. Matheny Motors, which is still a GM light and heavy duty truck dealer, is a likely candidate to become a service point, according to Matheny.
In addition to carrying GM, Matheny also sells Hino and Isuzu trucks.
Ring admitted Hino, like GM, has not been immune to economic woes.
"It is fair to say the economy has been tough on the transportation sector overall and we have not been immune to that," he said.
In March, Hino announced a wage freeze for hourly workers and a temporary wage reduction for the salaried workers in Williamstown. In April, the company eliminated about 10 positions due to economic conditions, according to Ring.
Ring said the company is focused on the Japanese concept of "kaizen" (continuous improvement) to refine its processes and become more efficient. And he expects things to improve down the road.
"We have taken this opportunity to try to improve ourselves," he said.
"Overall, the trucking industry should be on the edge of a recovery. Current economic conditions notwithstanding, Hino is optimistic about the long-term future and committed to its presence in Williamstown."