Volkswagen group will acquire Navistar (Heavy Utility Vehicles)
- The Volkswagen group has a subsidiary called Traton, which covers the brands Scania and MAN. This entity produced and sold 242,000 Medium and Heavy Utility Vehicles (MUV & HUV) in 2019 (compared to 233,000 units in 2018) divided into 142,500 MAN and 99,500 Scania. Thanks to this subsidiary, the Volkswagen group was able to overtake the Renault-Nissan group in 2018, as the world's leading vehicle producer.
- However, this Traton division does not produce enough MUV and HUV to be able to compete against the two leaders of this market, namely the Volvo Trucks group (Volvo Trucks, Renault Trucks, Mack Trucks) and the Daimler Trucks group (Mercedes, Freightliner, Fuso, Western Star, BharatBenz) which each produces around 500,000 vehicles per year.
- This is the reason why the Volkswagen group has been interested since 2016 in the American truck producer Navistar group (with only one brand: International) which sells between 335,000 and 365,000 vehicles per year, including 210,000 to 240,000 Class 8 trucks models (the heaviest). The Navistar group’s main market is North America (United States and Canada), where it is one of the leaders.
- In 2016, the Volkswagen group already put a foot in Navistar by acquiring 16.8% of the capital. In 2020, the German carmaker decided to entirely buy the American truck producer. It will allow Traton to reach a volume of 500,000 UV per year which and become the market leader in trucks ahead of Volvo Trucks and Daimler Trucks. This acquisition would also allow Volkswagen to gain a share of the North American market (where Volvo Trucks and Daimler Trucks are well established), since Scania and MAN are mainly present in Europe and in Latin America but not so much in North America.
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