Vw wants a stake in U.S. truckmaker Navistar

Article by Christian A., on June 12, 2012

Volkswagen wants to catch up with Daimler and so it is now thinking about a plan to take a stake in Navistar International, the U.S. truck and engine maker, according to a report last Sunday by the Financial Times Deutschland. The article, which declined to name its sources, said that VW would be better able to compete with Daimler Trucks by teaming up with Navistar in the U.S.

Daimler Trucks, the biggest commercial vehicle maker in the world, is the owner of the U.S. truck brand Freightliner. Volkswagen has yet to comment on this report. Last Thursday, Navistar reported a loss in the second quarter.

It cited a huge charge for warranty costs, involving engines made in 2010 and 2011, lowering its shares by as much as 28%, their lowest rate since late 2008. Volkswagen oversees Swedish truckmaker Scania, which is not a major presence in the U.S., as well as Germany's MAN SE, which operates mostly in Europe, Brazil, and other growing market economies.

There is a major split in the U.S. heavy truck market between Daimler's Freightliner, Volvo with its Mack brand, Navistar's International, and Paccar's Kenworth and Peterbilt trucks. Since European trucks are made with the cab over engine, synergies have become more difficult to accomplish with a U.S. truckmaker.

However, VW would at least gain control over a sales and distribution network aside from the International brand, according to Reuters’ source. However, if Volkswagen aims to take a stake, it would have to transact with activist investor Carl Icahn, who had been vocal about a merge with U.S. heavy truckmaker Oshkosh Corp. in late 2011 and early 2012.

Last Friday, Navistar shares gained almost a fifth in value, after Icahn increased his stake in the company to almost 12%. Sergio Marchionne, the CEO of Fiat and Chrysler, said last Friday that he was interested in the U.S. truck market.

Topics: vw

If you liked the article, share on:

Comments

Recommended

Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Have you been wondering how much you have to produce to acquire a 2018 Mercedes-Benz S-Class Facelift? Wonder no more, as Mercedes-Benz has already divulged the pricing – at least...
by - May 26, 2017
Following the M3’s new facelift earlier this year, BMW is once again bringing something fresh to the table. In its newest offering, a cheaper version of the high performance sedan...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries