Volkswagen's Navistar buy ratified

Volkswagen Truck & Bus pays USD 256 million for 16.6 per cent of Navistar shares

The strategic alliance between Volkswagen Truck & Bus which includes the MAN, Scania, Volkswagen, and RIO brands — and U.S. manufacturer Navistar has been approved.

Volkswagen Truck & Bus has acquired a stake of 16.6 per cent in Navistar paying $US15.76 per share. The purchase price is $US256 million and takes the form of a capital increase.

Navistar International Corporation produces International brand trucks, proprietary diesel engines, and IC Bus brand school and commercial buses.

The co-operation between the two manufacturers involves working together on technical components and in purchasing. Volkswagen Truck & Bus CEO Andreas Renschler and CFO Matthias Gründler have joined the Navistar Board of Directors.

"The authorities have given our strategic alliance with Navistar the green light. Our newly-found purchasing co-operation will begin work immediately. This puts both partners in a stronger position for the future. The strategic alliance provides Volkswagen Truck & Bus with access to the all-important North American market. This is a major step towards becoming a Global Champion," said Renschler,

Troy Clarke, President and CEO of Navistar added: "This alliance with Volkswagen Truck & Bus marks a significant milestone in our company's history, and will create multiple benefits for both companies in both the near- and long-term. Now that the transaction has closed, we will move quickly to collaborate with an industry-leading, strategic partner to increase our global scale, strengthen our competitiveness, and provide our customers with expanded access to cutting-edge products, technology and services."

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. This underscores Volkswagen Truck & Bus's aspiration to offer its customers all over the world intelligent and eco-friendly solutions.

According to Volkswagen, the aim of closer co-operation in the supply chain is for both partners to benefit from cost advantages and economies of scale. To this end, Volkswagen Truck & Bus and Navistar have founded a joint venture company called Global Truck & Bus Procurement which is headquartered in Lisle (Illinois) and will begin work immediately.

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. As of December 31, 2016, the Company employed 77,000 people at all commercial vehicle brands worldwide.

Volkswagen's Navistar buy ratified

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