February 27, 2020

Navistar says Volkswagen deal moving ahead

Navistar and VW continue to make steps towards alliance…

Navistar has confirmed that everything remains on track in regards to the truck manufacturer’s strategic alliance with Volkswagen.

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.

The deal allowing Volkswagen to access the U.S. market with its Scania and MAN truck brands.

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.”

About Simon Lai 1043 Articles
Simon is a writer and sometime contributor to the podcast. He also takes care of video production and product reviews. He met Joel through radio school and has worked with him on other ventures, reading news, producing and presenting radio content for regional networks. Simon doesn’t profess to be a car nut but enjoys driving first and foremost and has a penchant for hot hatches. He helps to provide the everyday-man perspective.

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