TOKYO Tadaaki Jagawa is the new president of truckmaker Hino Motors Ltd. He replaces Hiroshi Yuasa, who becomes an adviser.
Jagawa, 62, had been executive vice president for purchasing and new business development at Toyota Motor Corp. His switch coincides with Toyota's raising its stake in Hino from 36.6 percent to 50.1 percent.
Jagawa and Toyota President Fujio Cho confirmed what the increased stake means. Toyota will take a larger role in Hino's future. 'We want to strengthen our ties in an era of global competition,' Jagawa said.
Toyota will pay $552.4 million for 122.3 million new shares of Hino in late August.
Like other Japanese truckmakers, Hino has struggled because of weak domestic demand and reduced exports to Southeast Asia. Jagawa has a broad background in finance, administration and other areas. But his purchasing skills may be most useful to Hino. 'First of all, we would like to work on cost cutting,' he said.
Toyota has been tightening equity ties within the Toyota Group. In September 1998, Toyota raised its stake in small-car specialist Daihatsu Motor Co. from 34.5 percent to 51.2 percent.
Iwao Okijima will remain as Hino's chairman. He is the fourth consecutive chairman sent to Hino from Toyota since 1985.