- Jun 12, 2012
VW mulling stake in U.S. truckmaker Navistar
Volkswagen is reportedly looking into taking a stake in heavy truck maker Navistar International in an attempt to gain ground on rival Daimler. Reuters references a Financial Times Deutschland report as saying such a move would give VW a leg up on Daimler Trucks, which holds the keys to U.S.-based Freightliner.
Navistar International hasn't performed particularly well in recent months. Last quarter saw the truck maker post a second quarter loss tied to warranty costs. The news sent the company's stock down by 28 percent to its lowest level since 2008.
The current Volkswagen portfolio includes both MAN and Scania, though neither of those commercial truck brands offer any presence in the sizable U.S. market. But Navistar has other suitors beyond Volkswagen. Investor Carl Icahn has voiced his desire for the company to merge with Oshkosh Corporation. Icahn increased his stake in Navistar by 12 percent last Friday. Meanwhile, Fiat CEO Sergio Marchionne has made it clear he wants to delve into the U.S. big rig market as well.