VW, Navistar Link Up Imminent?

06 September 2016

Reuters and others are reporting that Volkswagen’s commercial vehicle division is on the verge of announcing a partnership with Navistar International Corp.

Apparently the deal calls for Volkswagen to supply diesel engines in exchange for a 19.9 percent stake in Navistar.  The reports say the official announcement could come as soon as today.  Reportedly Volkswagen will pay around $16 per Navistar share or about € 200 million/$223 million.

If true, this would be the latest global expansion effort for Volkswagen’s commercial vehicles division having absorbed Germany’s MAN and Sweden’s Scania. Navistar, it is speculated, is looking for a technology partner to build diesel engines that can meet upcoming more stringent emissions regulations.  Volkswagen would also gain access to Navistar’s North American dealer network.


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