* Germany - VW take big stake, likely to pay about $16 a share for Navistar stake
--- Volkswagen AG plans to buy a minority stake in Navistar International Corp. to provide a foothold in the U.S. and bolster its global truck-market aspirations... The proposed transaction, which could be announced as early as Tuesday, comes as Navistar deals with the fallout from a run-in over emissions regulations and a declining market share that has left it trailing rivals in a North American commercial truck market wrestling with a slump... VW’s plan to pay roughly $200 million for a nearly 17% stake in Navistar paying $16 a share, a nearly 14% premium on Friday’s closing share price of $14.07. Navistar had a market value of $1.2 billion at Friday’s close... Executives at the German auto maker feel confident enough to expand strategically in the U.S., even as they work through the fallout from a scandal over the rigging of emissions tests on many of VW’s most popular passenger cars...
... Lisle-Ill.-based Navistar is still trying to overcome its own emissions problems. The company agreed earlier this year to pay the Securities and Exchange Commission $7.5 million to settle charges it misled investors about its ability to comply with tougher U.S. standards on diesel engine exhaust beginning in 2010... Navistar draws most of its sales from the U.S., Canada and Mexico and has a limited overseas business, making it a potentially good fit for VW. Navistar also has a strong dealer network that provides service and replacement parts... Navistar ranks fourth in the North America heavy-duty truck market with about 11% of retail sales. Market-leader Freightliner has about 40% of the market. In between are strong competitors Paccar Inc.—the maker of Peterbilt and Kenworth trucks—and Volvo... VW’s wager on Navistar isn’t sure of success. The U.S. truck maker has lost a lot of ground over the past few years and it is uncertain whether the two companies will be able to align their corporate cultures to quickly improve the brand’s reputation and its products... The German auto maker doesn’t have engines tailored to the U.S. market yet, which it will now have to develop for Navistar. It is also unclear how Volkswagen will position Navistar in North America in relation to its main truck brands MAN and Scania...
(PHOTO: ZUMA PRESS - Volkswagen is nearing an agreement to take a stake in truck maker Navistar International, which draws most of its sales from the U.S., Canada and Mexico) -- Wofsburg, Germany - The WSJ, by DANA CIMILLUCA/WILLIAM BOSTON and BOB TITA - Sept. 6, 2016Labels: truckmakers news Germany, truckmakers news USA
![[Valid Atom 1.0]](valid-atom.png "Validate my Atom 1.0 feed")
0 Comments:
Post a Comment
<< Home