Volkswagen-Navistar alliance formalised


Renschler and Gründler join Navistar board

Volkswagen-Navistar alliance formalised
Andreas Renschler is optimistic about result of the partnership.

 

The strategic alliance between Volkswagen Truck & Bus and US-based automaker Navistar received an all-clear from authorities earlier this week.

This means, the Volkswagen will acquire a 16.6 per cent stake in Navistar for US$256 million (A$333.7 million).

The partnership mainly involves "working together on technical components and in procurement" to provide cost advantages and economies of scale.

To this end, the two companies have founded joint venture Global Truck & Bus Procurement.

With the green light shown, this purchasing cooperation will begin work immediately, Volkswagen Truck & Bus CEO Andreas Renschler says.

"This [partnership] puts both partners in a stronger position for the future," Renschler says.

"The strategic alliance provides Volkswagen Truck & Bus with access to the all-important North American market. This is a major step towards becoming a Global Champion."

Newly-elected president and CEO of Navistar Troy Clarke says the alliance will "create multiple benefits for both companies in both the near- and long-term".

"Now that the transaction has closed, we will move quickly to collaborate with an industry-leading, strategic partner to increase our global scale, strengthen our competitiveness, and provide our customers with expanded access to cutting-edge products, technology and services," Clarke says.

Renschler and Volkswagen Trucks & Bus CFO Matthias Gründler joined the Navistar board earlier this week.

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