Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/734262
October 2016 | Overdrive | 15 Volkswagen to buy stake in Navistar Navistar International last month announced that Volkswa- gen will acquire a roughly 17 percent stake in the company, setting up a strategic power- train alliance between the two companies. In the near term, the partnership will focus on developing common power- train systems that are set to be delivered to North American customers by 2019. Troy Clarke, Navistar presi- dent and chief executive officer, said the long-term goal of the joint venture is to expand the technology options available to customers, such as advanced driver assistance systems, con- nected vehicle solutions, cabin and chassis components and fuel efficiency technologies. "The alliance unites two companies with complementary market positions," said Andreas Renschler, CEO of Volkswa- gen Truck & Bus and member of the Board of Management of Volkswagen AG overseeing commercial vehicles. Volkswagen Truck & Bus gets 16.2 million shares in Navistar – a 16.6 percent stake – and two seats on its board of directors. Navistar gets $256 million – a valuation of $15.76 per share and a 12 percent markup of the stock's price at close Sept. 2. Navistar has "no plans to displace Cummins" as an engine supplier, Clarke said. Cummins engines are in 80 percent of all International products, including 60 percent of its on-highway vehicles. – Jason Cannon