NAVISTAR AND VOLKSWAGEN TRUCK AND BUS ALLIANCEStrategic Navistar Alliance with VW
- September 6, 2016
- On Demand
- Posted by Altruck
- Comments Off on NAVISTAR AND VOLKSWAGEN TRUCK AND BUS ALLIANCE
Navistar is excited to announce the formation of a wide-ranging strategic alliance with Volkswagen Truck & Bus. Volkswagen is the largest truck company in Europe and has a significant global presence.This Navistar and Volkswagen alliance marks yet another step in Navistar’s journey to becoming a stronger company, while enhancing our long-term product offering for our customers. This alliance creates a partnership between two companies to now cover 25% of global truck market.
The Navistar and Volkswagen alliance includes an equity investment in Navistar by Volkswagen Truck & Bus and framework agreements for strategic technology and supply collaboration and procurement joint venture. Navistar International Corp. expects savings of at least $500 million over the first five years. By the fifth year, the company anticipates the alliance will generate annual savings of at least $200 million for its business.
DETAILS ON THE NAVISTAR AND VOLKSWAGEN ALLIANCE
- Volkswagen Truck & Bus will take a 16.6% equity stake in Navistar. Volkswagen will also 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 strategic technology and supply partnership builds on Navistar’s open integration strategy of partnering with the best global companies in the industry to integrate cutting-edge technology. It is expected the partnership will focus on powertrain technology solutions, as well as explore collaboration in all aspects of commercial vehicle development, including advanced driver assistance systems, connected vehicle solutions, platooning and autonomous technologies, electric vehicles, and cab and chassis components.
- The expected procurement joint venture will help source parts for Navistar and Volkswagen Truck and Bus, helping both realize global economies of scale.
Here is what Troy Clarke, President and CEO of Navistar had to say about this alliance:
We are very pleased to partner with a global leader who shares our view of the world, in an alliance that will deliver multiple benefits and is consistent with our open-integration strategy. Starting in the near term, this alliance will benefit our purchasing operations through global scope and scale. Over the longer term, it is intended to expand the technology options we are able to offer our customers by leveraging the best of both companies and enabling Navistar to deliver enhanced uptime. Volkswagen Truck & Bus’s equity investment will strengthen our liquidity position and expand our financial flexibility, while aligning us with a valuable strategic partner.
BENEFITS OF THE NAVISTAR AND VOLKSWAGEN ALLIANCE
This marks another step in our journey to offer you better products that help you win. This alliance will:
- Make you more competitive and profitable by enabling further investments in future products that deliver leading uptime, fuel efficiency, safety and driver appeal.
- Make your business more productive with the collaboration on new commercial vehicle technologies, including powertrains, advanced driver assistance systems, connected vehicle solutions, platooning and autonomous technologies, and cab and chassis components.
- Enhanced economies of scale through global sourcing power will allow Navistar to better compete against global competitors for your business.
Navistar will remain a leading, independent truck, bus and engine company, focused on providing best-in-class products and related services to its customers globally and delivering value for its shareholders. Navistar expects the strategic alliance to close by late 2016 or early 2017, pending regulatory approvals.
Please call us at 888.539.7110 or visit altruck.com for more information.