Scandal-hit truckmaker Hino cancels net earnings forecast

Scandal-hit truckmaker Hino cancels net earnings forecast

The brand’s permission to sell certain trucks and models has been revoked.

Hino Motors decided it is currently too difficult to calculate losses, including customer compensation and a recall of vehicles. (Wiki Commons pic)
TOKYO:
Hino Motors will not announce a net earnings forecast for the fiscal year ending March amid the fallout from its emissions and fuel efficiency falsification scandal, Nikkei has learned.

The truckmaker plans to announce earnings from the April-September period today.

However, it decided that it is currently too difficult to calculate losses relating to the scandal, including compensation to customers and the recall of affected vehicles, to forecast net earnings for the full fiscal year.

Those calculations have been complicated by a move in August to expand the number of vehicles affected since the initial announcement by Hino in March.

“I can’t predict when production on large trucks will resume, but as for [an earnings forecast for] the full year, it will likely come in the form of an explanation in case production cannot resume this year, and the amount of total compensation,” Hino president Satoshi Ogiso told an Oct 7 news conference.

The Ministry of Land, Infrastructure, Transport and Tourism has revoked Hino’s permission to sell certain trucks and other models that make up 40% of its domestic sales. There is no established schedule to resume shipments of the vehicles affected.

Today, the company is expected to announce sales and operating profit projections based on the assumption that it will likely be unable to resume shipments this year.

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