VW Truck & Bus, which also owns MAN and Scania, now expects to gain access to the North American market, where it has not formerly been represented.
The firm also expects to become one of Navistar’s most important technology partners, focusing initially on common powertrain systems, but ultimately collaborating more widely on future commercial vehicle development.
On the procurement side, VW Truck & Bus is to establish a joint venture with Navistar to pursue joint global sourcing.
“Closer collaboration among our existing brands was a top priority for our CV business and we are well on track,” states VW Truck & Bus CEO Andreas Renschler.
“We are now taking the next step on our way to becoming a global champion in the commercial vehicles industry… The strategic alliance with Navistar is an important milestone.”
“Navistar will be able to profit from excellent powertrain technologies and we, in turn, will benefit from significantly higher volumes,” comments Matthias Gründler, CFO of Volkswagen Truck & Bus.
“Initiating this strategic alliance now will enable us to implement the requirements of Navistar into our joint component platforms from the get-go,” he adds.
“Starting in the near term, this alliance will benefit our purchasing operations through global scope and scale,” says Troy Clarke, president and CEO of Navistar.
“Over the longer term, it is intended to expand the technology options … leveraging the best of both companies and enabling Navistar to deliver enhanced up-time,” he concludes.
The transaction and strategic alliance are subject to regulatory approvals, while the share acquisition depends on finalising details of the procurement joint venture and of the first contract under the technology and supply cooperation.
Closing is expected to be completed late this year or early in 2017.