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Navistar and VW Formalize New Alliance

On February 28, 2017, Navistar and VW Truck and Bus closed on a new alliance. Approximately six months ago, the major manufacturers announced their intention to enter into a new partnership. Now that the parties have received the required government approval, the alliance is official.

Enhanced Capabilities

Troy Clarke, Navistar’s CEO and Chairman, says of the alliance, “we expect it will create multiple benefits for both companies in both the near and long-term.” He expects that the new alliance will “provide our customers with expanded access to cutting-edge products, technology and services.”

Volkswagen acquires a 16.6-percent stake in Navistar for $256 million. Two Volkswagen executives, VW Truck & Bus CEO Andreas Renschler and CFO Matthias Gründler, will become members of Navistar’s board of directors. Navistar’s CEO says their commercial vehicle manufacturing expertise should prove beneficial in the North American market.

Collaboration on Different Levels 

Executives expect that collaborative efforts should offer mutual benefits in the form of:

  • A procurement joint venture
  • Supply collaboration
  • Joint technology sharing

The procurement partnership, Global Truck and Bus Procurement LLC, will operate out of the Lisle, Illinois, headquarters of Navistar. Technology sharing will focus in part on advanced power train solutions, and it will be based in Stockholm, Sweden. 

Significant Benefits 

The benefits of the partnership will increasingly accrue over the next few years. By year five, Navistar expects the value of overall benefits to exceed $200 million/yr. Thereafter, benefits of the cooperative efforts are expected to offer even greater value to both manufacturers and their customers.

At Robertson's Truck Sales, we offer an outstanding inventory of commercial trucks, including Navistar's International line.