Navistar, VW Complete Alliance, Look for Synergies

March 2, 2017

Navistar International Corp. and Volkswagen Truck & Bus finalized their “strategic alliance”, which centers on a VW buying 16.6% of Navistar for $256 million — and includes a framework agreement for a procurement joint venture to be established by the two, as well as collaboration on product technology.

Robert Brooks

Navistar International Corp. (IW500/102) and Volkswagen Truck & Bus finalized the equity- and technology-sharing “strategic alliance” that the two manufacturers announced last September. The deal — which centers on a VW buying 16.6% of Navistar for $256 million — includes a framework agreement for a procurement joint venture to be established by the two, as well as collaboration on product technology.

"This alliance with Volkswagen Truck & Bus marks a significant milestone in our company's history, and we expect it will create multiple benefits for both companies in both the near and long term," stated Navistar chairman, president, and CEO Troy Clarke. "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."

VW’s investment also nets it two positions on the Navistar board of directors, to be held Andreas Renschler, CEO of Volkswagen Truck & Bus, and Matthias Gründler, CFO of the German group.

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About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)