Hino Motors, a truck manufacturer, announced that it will record an extraordinary loss of 14 billion yen because the manufactured engine did not meet the regulatory standards of the United States and it became impossible to produce trucks locally.
This year's business results are expected to reach a final deficit of over 10 billion yen.
Hino Motors will not be able to produce trucks in the United States and Canada until September, saying that the engines for trucks it manufactures in Japan did not meet the standards of US regulators.
For this reason, according to the company, compensation costs to local dealers who sell trucks will increase, and an extraordinary loss of 14 billion yen will be recorded.
In addition, the Group's overall business outlook for the current fiscal year has been revised downward from a final deficit of 3 billion yen to a final deficit of 12 billion yen.
The final profit / loss for the nine months until December last year was a deficit of 2.1 billion yen.
The company has not disclosed specific details such as what criteria it could not meet.
On the other hand, regarding the impact of the global shortage of semiconductors used in car parts, Hino Motors will respond with in-stock parts throughout the next month, but the impact after March is uncertain.