Volkswagen buys 16.6% stake in Navistar trucks
Volkswagen has moved to purchase a 16.6-percent stake in truck company Navistar for US$ 256 million, Reuters reported. The move should help VW gain access to the North American truck market and reduce development costs for its truck and bus division.
Volkswagen already controls trucks and buses companies Scania and MAN, both of them with assembly plants in El Marques, Queretaro.
Navistar’s U.S. trucks will receive an adapted version of Volkswagen’s next-gen engines for MAN and Scania. Both VW and Navistar have agreed to collaborate on “many aspects” of future commercial truck development.
“Navistar will be able to profit from excellent powertrain technologies and we, in turn, will benefit from significantly higher volumes,” said Volkswagen Truck & Bus CFO Matthias Gründler said in a statement. “Initiating this strategic alliance now will enable us to implement the requirements of Navistar into our joint component platforms from the get-go.”
The automaker will pay US$ 15.76 per share to acquire 16.2 million new Navistar shares. Volkswagen will also benefit from representation on Navistar’s board of directors.