Japanese commercial vehicle manufacturer Hino Motors has signed an agreement with Germany’s Volkswagen Truck & Bus to cooperate in logistics and traffic solution research, as well as explore new technologies and procurement.

Evaluation of technology cooperation will focus on conventional powertrains, hybrid and electric powertrains, and connectivity and autonomous driving systems.

A joint Alliance Board has been established based on the Strategic Cooperation Framework Agreement (SCFA) to discuss the direction of the long-term partnership. The Alliance Board will pursue a pragmatic approach with a lean organization and balanced rights for both companies that will remain independent, comprising the CEOs from both companies, as well as senior management representatives.

“This agreement was made possible because Hino Motors and Volkswagen Truck & Bus respect each other and share the same aspiration to offer customers the highest value,” said Hino Motors president and CEO, Yoshio Shimo.

Shimo said the relationship will “be a strong tie-up at times of new challenges in the field of transportation due to the rapid growth of e-commerce.”

Volkswagen Truck & Bus CEO Andreas Renschler said the tie-up “is an excellent fit in terms of regional footprints and products, but also concerning common ideas on how to shape the future of transportation together.”

“The cooperation with Hino Motors will also contribute to our strategy to become a global champion in the transportation industry by providing the highest value to our customers,” he said.