Toyota Motor Corp TM unit Hino Motors Ltd. HINOY has canceled the sale of BYD Co Ltd.‘s BYDDF BYDDY small electric bus in Japan.
What Happened: Hino Motors scrapped the sale of the electric bus supplied by the Warren Buffett-backed company as it was built using a toxic chemical banned under Japanese industry guidelines, Nikkei Asia reported on Wednesday.
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BYD did not immediately respond to Benzinga‘s request for comment.
According to the Nikkei report, Hino had been negotiating with BYD to build the Poncho Z EV without the use of hexavalent chromium, deemed toxic, but could not reach a resolution.
The Japan Automobile Manufacturers Association, or JAMA, of which Hino is a member, banned the use of the substance in 2008.
Last week, Hino said that it shall not be releasing the 30-seat bus in the Japanese market.
Why It’s Important: BYD had supposed to provide Hino with the Poncho Z EV beneath an unique gear producer contract, based on the Nikkei report.
The preliminary supply date of the bus was scheduled for spring 2022, however high quality considerations led to a delay to the tip of the fiscal 12 months, based on Hino on the time.
Hino and BYD have been negotiating to construct the bus with out utilizing the chemical, however they had been unable to return to a decision.
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