Green light for alliance between Volkswagen Truck & Bus and Navistar; Volkswagen acquires 16.6% for $256M
The strategic alliance between Volkswagen Truck & Bus GmbH—which houses the MAN, Scania, Volkswagen Caminhões e Ônibus, and RIO brands—and US commercial vehicle manufacturer Navistar International Corporation (earlier post) has been approved by the authorities responsible. Volkswagen Truck & Bus has acquired a stake of 16.6% in Navistar paying US$15.76 per share. The purchase price is US$256 million and takes the form of a capital increase.
The cooperation primarily involves working together on technical components and in procurement. Following an internal Navistar resolution, Volkswagen Truck & Bus CEO Andreas Renschler and CFO Matthias Gründler yesterday joined the Navistar Board of Directors.
Volkswagen Truck & Bus is to become one of Navistar’s key technology partners. Navistar will be able to benefit from Volkswagen Truck & Bus’s advanced powertrain technologies in the future. This in turn will result in significantly higher volumes for Volkswagen Truck & Bus. Opportunities for cooperation in the fields of autonomous driving, alternative fuel technologies, and connectivity are also being explored.
The aim of closer cooperation in the supply chain is for both alliance partners to benefit from cost advantages and economies of scale. To this end, Volkswagen Truck & Bus and Navistar have founded joint venture Global Truck & Bus Procurement LLC which is headquartered in Lisle (Illinois) and will begin work immediately. An Alliance Board made up of representatives from both companies will drive the strategic alliance forward at operational level. On behalf of Volkswagen Truck & Bus, Dr. Frederik Zohm will be in charge of its operational work.
In 2016, the brands of Volkswagen Truck & Bus sold a total of 184,000 vehicles. Its product range includes light commercial vehicles, trucks and buses that are manufactured at 25 sites in 17 countries.