Navistar and VW Chiefs Talk Up Their Alliance Deal
Graphic: VW Truck and Bus
">Graphic: VW Truck and Bus
">HANNOVER, GERMANY. Just two weeks after revealing they had forged a “wide-ranging strategic alliance,” the chief executives of Volkswagen Truck and Bus and Navistar International Corp. fielded questions from North American journalists covering the massive IAA truck show opening here this week.
Their overall take on the deal was that it enables them to together develop advanced technology that will be needed by global truck markets for years to come.
On Sept. 7, VW announced it would acquire a 16.6% equity stake in Navistar and that the two OEMs would act as partners to share technological developments, especially regarding powertrains, and to pursue global sourcing opportunities to increase economy of scale.
Andreas Renschler, CEO of Volkswagen Truck & Bus, which also owns Europe-based global truck builders Scania and MAN, and Navistar CEO Troy Clarke said that discussions with an eye to seeking synergies that ultimately led to the deal began a year ago. Actual negotiations began only in March.
“We are looking forward to a successful alliance,” said Renschler, who is familiar with the North American trucking industry from when he headed up Daimler Trucks before moving onto VW two years ago. “Navistar needs what we can offer, including engines, transmissions and axles,” he said. He noted that thanks to the alliance, VW will be able to take into account Navistar's requirements as it develops new products.
“We are excited to have found a partner that looks at the future the way we do and with whom we have a high degree of alignment,” said Clarke, CEO of Navistar. “We have a common vision of the industry and its issues. That we can do it better together makes it a perfect fit.”
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