VW buys into Navistar
Volkswagen Truck & Bus GmbH and Navistar International Corporation, the American-based commercial vehicle manufacturer, have announced a far-reaching alliance. Volkswagen Truck & Bus has acquired a 16,6 percent equity stake in Navistar through a primary share issuance.
The deal also includes framework agreements for a strategic technology and supply cooperation, as well as a procurement joint venture.
With the completion of this transaction, Volkswagen Truck & Bus – which includes the brands MAN, Scania, and Volkswagen Caminhões e Ônibus – will gain access to the key North American market, where it was not previously represented.
Andreas Renschler, CEO of Volkswagen Truck & Bus and member of the Board of Management of Volkswagen AG responsible for commercial vehicles, says: “Closer collaboration among our existing brands was a top priority for our commercial vehicles business and we are well on track in this context.
“We are now taking the next step on our way to becoming a global champion in the commercial vehicle industry. The strategic alliance with Navistar is an important milestone and will be very beneficial for both sides.”
Troy Clarke, president and CEO of Navistar, says: “We are very pleased to partner with a global leader who shares our view of the world, in an alliance that will deliver multiple benefits and is consistent with our open-integration strategy.
“Starting in the near term, this alliance will benefit our purchasing operations through global scope and scale. Over the longer term, it is intended to expand the technology options we are able to offer our customers by leveraging the best of both companies and enabling Navistar to deliver enhanced up time.
“Volkswagen Truck & Bus’s equity investment will strengthen our liquidity position and expand our financial flexibility, while aligning us with a valuable strategic partner.”
Matthias Gründler, CFO of Volkswagen Truck & Bus, says: “Navistar will be able to profit from excellent powertrain technologies and we, in turn, will benefit from significantly higher volumes.”
Volkswagen Truck & Bus will be represented on Navistar’s Board of Directors. While the partnership will focus on common powertrain systems, it will also enable close collaboration in many aspects of future commercial vehicle development.