Volkswagen Ties Up With Big Rig Maker Navistar - Merger Possible

Volkswagen has agreed a wide-ranging technology and purchasing deal with U.S. truck maker Navistar International Corp. in exchange for a 16.6 percent stake, an alliance forged in part by the need to meet stringent emissions regulations.

The deal should help both sides cut costs, give Volkswagen's trucks business a long-desired foothold in North America, and provide a source of new engines for Navistar, which has been looking for a partner since 2010 when it failed to get approval from U.S. regulators for its heavy-duty diesel truck engine.

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PUGPROUD - 9/6/2016 11:42:24 AM

+1 Boost

This a surprise move considering VW is bleeding cash.

TheSteve - 9/6/2016 6:15:08 PM

+1 Boost

+1
...and doesn't have a good reputation at the moment, especially with respect to diesel. It seems the VW name is an rock around a neck at the moment.

MDarringer - 9/6/2016 10:14:41 PM

-1 Boost

This is a BRILLIANT move for VW.

Navistar is not exactly in a good place right now, so VW buys in to this American company as the savior.

VW clearly has more money than it lets on.

I really think VW will buy Jeep and Ram from FCA. They probably have to take Chrysler--which they will kill to install Skoda and keep Dodge around as long as muscle sells.

Doing that would AGAIN paint VW as the savior to an American company.