Volkswagen truck unit takes stake in Navistar partner amid takeover talks

Acquiring the maker of International brand commercial trucks would enable Volkswagen truck unit Traton to access the North American truck market, whic
...
Volkswagen (VW) logo (Bloomberg)
Volkswagen (VW) logo

Volkswagen AG’s Traton is partnering with a self-driving startup that recently aligned with Navistar International Corp., the US manufacturer that VW’s truck unit is trying to acquire.

Traton SE and TuSimple Inc. will team up initially to develop autonomous trucks for a set route in Sweden, the companies announced in a joint statement Wednesday. They’ll work together on a Level 4 automation system that will render Scania vehicles capable of driving without human intervention under certain conditions. Their goal will be to eventually test fleets throughout Sweden, Germany and other countries.

Also check these Cars

Find more Cars
Volkswagen Polo 2024 (HT Auto photo)
UPCOMING
Engine Icon999 cc FuelType IconPetrol
₹ 8 Lakhs
View Details
Volkswagen Tiguan 2025 (HT Auto photo)
UPCOMING
Engine Icon1984 cc FuelType IconPetrol
₹ 37 Lakhs
View Details
Volkswagen Taigun (HT Auto photo)
Engine Icon1498.0 cc FuelType IconPetrol
₹ 10.49 - 17.50 Lakhs
Compare
View Offers
Volkswagen Virtus (HT Auto photo)
Engine Icon999.0 cc FuelType IconPetrol
₹ 11.21 - 17.91 Lakh
Compare
View Offers
Volkswagen Tiguan (HT Auto photo)
Engine Icon1984.0 cc FuelType IconPetrol
₹ 32.79 Lakhs
Compare
View Offers
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
View Details

Traton has taken a minority stake in TuSimple as part of the partnership, mimicking a tie-up the San Diego-based startup announced with Navistar two months ago. Traton already has an almost 17% stake in Navistar and has offered $3.6 billion to buy the rest. Navistar has said that while Traton’s bid underestimates its value, the Lisle, Illinois-based company wants to engage in further talks.

Also Read : Volkswagen throws light on all-new light design of upcoming ID.4 EV

The partnership with TuSimple is “another step toward becoming a global champion," Matthias Gruendler, Traton’s new chief executive officer, said in the statement. He will address shareholders for the first time on Wednesday at the company’s annual general meeting after succeeding Andreas Renschler as part of an abrupt management reshuffling this summer.

Investors will be eager for updates from Gruendler on cost cuts at Traton’s troubled MAN division, its progress rolling out electric and self-driving trucks and the takeover talks with Navistar. Traton is the company’s second-largest shareholder, behind the billionaire investor Carl Icahn, according to data compiled by Bloomberg.

Also Read : Volkswagen teases a new sub-compact SUV, names it Taos)

“In a takeover negotiation phase, there is inherently some friction between buyer and seller," said Roman Mathyssek, a Munich-based consultant at Arthur D. Little GmbH. “When assessing the offer from Traton, shareholders should amongst others take Navistar’s profitability into account, which is on the weak side relative to its global peer group."

Acquiring the maker of International brand commercial trucks would enable Traton to access the North American truck market, which accounts for the biggest chunk of industry profits. The two also would presumably save substantial development costs related to new technology.

First Published Date: 23 Sep 2020, 13:35 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.