Category: Trucking News

VW to Buy Stake in Navistar, Reports Say

Published reports on Monday indicate that Volkswagen's truck division will acquire a stake in Navistar International Corp. and sell engines to the American truck builder, according to Reuters, the Wall Street Journal and the Economic Times.

The deal, which could be announced by VW and Navistar on Tuesday, would give the German-based company a foothold in North America and could threaten Cummins' strong supplier relationship with Navistar, noted Stifel, a stock and industry analyst firm, in reacting to the reports on Monday.

Just how big a stake the company is buying was unclear. Reuters reported 19.9% while the Wal Street Journal said 17%.

Reuters said Volkswagen has agreed to supply engines to Navistar as part of the deal, quoting an unnamed source. Reuters also noted that Volkswagen declined to comment and Navistar couldn't be reached over the Labor Day holiday. Volkswagen will pay around $16 per Navistar share or about $223 million in total, the source told Reuters.

The WSJ says the two companies have been in on-again, off-again talks since early 2015. Sources told the Journal that they have agreed to cooperate on purchasing and developing new products.

Volkswagen reportedly would get two seats on the board of directors as part of the deal and would be joining a board that already includes representatives of activist investors Carl Icahn and Mark Rachesky, who each control about 20% of the company.

“VW has long been rumored to be interested in Navistar,” WSJ wrote. “The German company is a powerhouse in the global truck market, particularly in Europe and Brazil, but doesn't sell many [make that any] large commercial trucks in the U.S."

“Navistar draws most of its sales from the U.S., Canada and Mexico and has a limited overseas business, making it a potentially good fit for VW. Navistar also has a strong dealer network that ...Read the rest of this story

International Truck Inks Deal with Big Ten Conference

Navistar International has announced an integrated marketing partnership that will name its International brand as the official equipment truck of the Big Ten Conference and Big Ten Network for the 2016 and 2017 football seasons.

“Just like the Big Ten Conference, the roots of International Truck are based in the Midwest,” said Mark Johnson, Navistar vice president, marketing. “Both brands share many similar values, including a strong work ethic and legendary toughness. We are honored to be supporting the Big Ten Conference.”

As part of the deal with the Big Ten Network and conference rights partner Learfield's Big Ten Sports Properties, the International DuraStar will be the featured equipment truck on the inaugural BTN Tailgate show on Big Ten Network this fall. The truck will be featured in live shows at regular season conference matchups as well as at the 2016 Big Ten Football Championship Game in Indianapolis. Additionally, International Truck will receive a media schedule throughout the season across Big Ten Sports Properties and BTN platforms.

The featured DuraStar will make its debut on September 24 at Michigan State University in the conference game against Wisconsin. Navistar said the truck will be configured to suit the typical pickup-and- delivery customer, including a Cummins ISB6.7 engine paired with an Eaton Procision transmission.

Click here for games dates and other information.

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