Navistar Announces Alliance with Volkswagen Truck & Bus


September 6, 2016 by Minuteman Trucks


Navistar is excited to announce the formation of a wide-ranging alliance with Volkswagen Truck & Bus, which is the largest truck company in Europe and also has a significant global presence.

This alliance marks yet another step to becoming a stronger company, while enhancing long-term offering of products for customers.

The alliance with Volkswagen Truck & Bus includes an equity investment in Navistar by Volkswagen Truck & Bus and framework agreements for strategic technology and supply collaboration and procurement joint venture. Volkswagen Truck & Bus will take a 16.6% equity stake in Navistar through a new stock issue; Volkswagen will have the opportunity to name two new members to the Navistar Board of Directors.

Navistar products will benefit from major Volkswagen Truck & Bus components and technology through licensing agreements. The technology sharing element of the new alliance will focus on powertrain opportunities. Collaboration on additional aspects of commercial vehicle development will be explored at a later date.

The strategic alliance is set to close by late 2016 or early 2017, pending regulatory approvals.

This alliance benefits Navistar, its International Truck and IC Bus dealers and our collective customer base in four ways:

  • Strengthens Navistar’s financial position and enables further invest in future products that deliver leading uptime, fuel efficiency, safety and driver appeal
  • Brings a strategic partner who is aligned with Navistar’s interests and business strategy to help grow the International Truck and IC Bus businesses
  • Allows for collaboration on new commercial vehicle technologies, including powertrains, and later advanced driver assistance systems, connected vehicle solutions, platooning and autonomous technologies, and cab and chassis components
  • Provides improved economies of scale through global sourcing power which will allow Navistar to better compete against global competitors


Frequently Asked Questions with Answers

  1. Is this alliance a precursor to a full-blown takeover?
    Volkswagen Truck & Bus and Navistar will remain separate leading global truck, bus and engine companies, focused on providing best-in-class products and related services to their customers globally and delivering value for their respective shareholders. We believe that the strategic alliance we are forming utilizes the strengths of both companies and makes strong use of the current opportunity at hand, and both Volkswagen Truck & Bus and Navistar see this as an opportunity to realize substantial value for our respective shareholders
  2. Will you be bringing Volkswagen Truck & Bus products and brands to the North American market?
    The agreement does not contemplate Volkswagen Truck & Bus selling its existing brands in the North American market. Volkswagen Truck & Bus sees the strategic technology and supply partnership with Navistar as the most sensible way to benefit the North American market
  3. Will Navistar stop making any of your current products? If so, when?
    This strategic alliance will not have any immediate impact on our current truck and bus products. Keep in mind, we recently introduced our new HX Series premium severe service vehicles, and we will be launching our new flagship highway tractor, the LT Series, later this month. This announcement does not impact our plans to continue to refresh our entire product line over the next 18-24 months.
  4. How does the alliance impact your commercial agreements with Navistar’s powertrain suppliers (i.e. Cummins, Allison, Eaton, etc.)?
    We expect no immediate changes in our supplier relationships as a result of the alliance with Volkswagen Truck & Bus. We value our relationships with our suppliers, and our intent is that they remain important suppliers over the longer term.
  5. Will Navistar continue make their own engines?
    Yes, we will continue to manufacture engines. Furthermore, this announcement reaffirms our long-term commitment to proprietary engines by giving us additional powertrain technologies, products and parts from Volkswagen Truck and Bus.
  6. What impact will this announcement have on the next-generation N13 engine?
    This will not have an impact on the next-generation N13 program, as we are moving forward with plans to unveil the new N13 engine this spring.


Click here to read the full press release.


One thought on “Navistar Announces Alliance with Volkswagen Truck & Bus

  1. fixmytruck says:

    Great article like all that I have read in your blog, thank you and keep on!

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