Volkswagen Truck & Bus has formed a strategic alliance with Navistar, the US truck maker best known its International Truck brand.
Under the deal VW will take a 16.6 per cent stake in Navistar and the two companies will establish a joint procurement venture as well as cooperating on technology.
Andreas Renschler, CEO of Volkswagen Truck & Bus, said: “Closer collaboration among our existing brands was a top priority for our commercial vehicles business and we are well on track in this context. We are now taking the next step on our way to becoming a Global Champion in the commercial vehicles industry. The strategic alliance with Navistar is an important milestone and will be very beneficial for both sides.”
The procurement joint venture will pursue joint global sourcing opportunities, while the strategic technology and supply partnership will focus on common powertrain systems.
Troy Clarke, president and CEO of Navistar, said: “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.”