UPDATE: VW, Hino Form Commercial Truck Partnership

Hino Motors Ltd. and Volkswagen Truck & Bus GmbH have formed a strategic partnership that seeks to coordinate their commercial truck operations worldwide.

The two companies announced the nonequity agreement earlier today. Under the partnership, Hino and VW will look for ways to tap each other’s logistics, procurement, manufacturing, powertrains, connectivity technologies and autonomous driving systems. They also will explore possible joint powertrain development involving current and future technologies.

A key objective for the companies is to enhance their market positions. Hino is especially strong in Asia, and VW is well established in Europe and Brazil. Their announcement does not clarify whether the companies may eventually share sales networks.

The partnership will be guided by a joint alliance board that includes the CEOs of the two companies—Andreas Renschler at VW and Yoshio Shimo at Hino—and other senior executives.