A Toyota subsidiary will close its largest auto parts plant in the U.S. amid concerns about a difficult path to “sustainable profitability.”
Hino Motors Manufacturing USA opened the Marion, Arkansas, plant in 2006, making truck frames and axles for Hino commercial vehicles and for the Toyota parent company. It is by far the largest operation of the American division about 70% of its workforce in the country.
In a message on its website, Hino indicated that the board of directors had opted at a May 31 meeting to “exit from the parts business” at the plant in suburban Memphis. The factory, which employs approximately 1,300, is expected to close by the end of 2027.
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Hino, according to the Arkansas Democrat-Gazettetold investors that the Marion plant suffered an operating loss of $189 million in the most recent fiscal year, and company officials concluded that “restoring sustainable profitability” at the site would be “difficult,” the Document dated May 31 read.
The company said the move would allow it to “shift” its focus to its U.S. trucking business, and that it would treat its employees in Arkansas with “consideration and sincerity.” Hino operates a truck manufacturing plant in West Virginia and an administrative headquarters in Detroit.
State and local officials promised provide support to Marion employees affected by the closure.
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