Hino is halting truck production and sales in both the U.S. and Canada until it can meet new U.S. engine certification test requirements.
At a Dec. 23 meeting of its board of directors, Hino Motors approved what the company is calling a “formal pause” in North American truck production. Hino is the heavy truck manufacturing division of Toyota Motor Co.
Hino said in a press statement that the production halt was being implemented following “challenges” in the required U.S. engine certification testing process for new model years of the A09C, J08E, and J05E Hino diesel engines for North America truck models.
A new set of tighter emissions regulations imposed by the Environmental Protection Agency (EPA) will become law beginning in 2021.
The new regulations will further reduce emissions of carbon dioxide and other greenhouse diesel exhaust gases and require medium- and heavy-duty truck OEMs to boost fuel economy performance in new, 2021 model year vehicles.
Presumably, Hino will use the production and sales halt to ensure the A09C, J08E, and J05E engines are fully compliant with the new regulations.
The production halt will affect the company’s U.S. manufacturing facility in Mineral Wells, W.Va. as well as its Canadian operations in Woodstock, Ont., and will last until September 2021.
Accordingly, the company announced, new truck sales in North America will be suspended as well until the production halt is lifted. Hino said it expects to resume commercial truck sales in North America in October 2021, once production resumes and vehicles begin to be delivered to dealerships.
Hino said it is investigating the impact the production and sales halt would have on shareholders and promised that it would announce new earnings updates as they become available.