In September, Volkswagen Truck & Bus announced it was buying a 16.6% stake in Navistar, the manufacturer of International Trucks, ICBUS and light, medium and heavy duty diesel engines.
In an update released by Navistar, the company reported that all appropriate regulatory filings have been made, and antitrust approvals have been granted in the U.S. and Poland.
While other regulatory approvals are still pending, and other agreements between the parties that constitute closing conditions remain on track, according to Navistar.
It’s expected that the deal will be finalised next month.
Meantime, Navistar has reported a 17% decrease in revenue in the most recent fiscal quarter and a net loss of $34 million (USD).
Despite the difficulties, Troy Clarke, president and CEO, said he expected things to improve.
“Although we expect tough industry conditions to continue through the first half of 2017, we see further opportunities to continue to reduce our break-even point, including leveraging some early cost synergies from the Volkswagen Truck & Bus alliance,”
“The alliance announcement has been positively received by our customers, which when combined with our ongoing cadence of new product offerings, confirms our confidence in our improving standing in the market.”