VW brings back truck business to Japan

Amid a recovering market in Japan aided by post-quake reconstruction demand, Germany’s Volkswagen AG will bring back its truck unit by the end of 2012 through Scania AB, which is among the world’s largest truck manufacturers. The Swedish firm, which is largely owned by Volkswagen, entered the Japanese market in 2002 under a joint venture with Hino Motors Ltd., but was driven out in 2011 by sluggish sales. Scania, which is strong in alternative-fuel trucks, said it intends to release vehicles that weigh 16 tons or more, as well as models that run on alternative energy sources such as natural gas and biofuels. The firm plans to set up its own sites in Tokyo, Osaka, Hokkaido and other parts of Japan, to sell its Swedish-made vehicles. Scania said it will outsource after-sales services to independent dealerships and maintenance companies. Financing for truck purchases will be offered by the Volkswagen group. The company said it plans to bring down the cost of repair parts through efficient design while also taking advantage of the strong yen. Volkswagen sees many opportunities because there are natural gas stations now popping up along highways in Japan; they also plan to develop biofuel supply infrastructures in places like Hokkaido Prefecture. The Volkswagen group also plans to also offer diesel models and projects a total sale of at least 1,000 trucks annually in five years. (August 3, 2012)