Lisle-based Navistar, Volkswagen Truck & Bus form strategic alliance
Lisle-based Navistar and Volkswagen have entered into a strategic alliance in which Navistar will receive a $256 million equity investment, according to an announcement.
Terms for the Truck & Bus Close Strategic Alliance call for the companies to share strategic technology and collaborate on supply and pave the way for Volkswagen to walk away with a 16.6 percent stake in Navistar, effective Feb. 28. The deal has already secured all the necessary regulatory approvals, the announcement said.
"This alliance with Volkswagen Truck & Bus marks a significant milestone in our company's history, and we expect it will create multiple benefits for both companies in both the near and long term," Troy Clarke, Navistar's chairman, president and CEO, said in the announcement. "Now that the transaction has closed, we will move quickly to collaborate with an industry-leading, strategic partner to increase our global scale, strengthen our competitiveness, and provide our customers with expanded access to cutting-edge products, technology and services."
Volkswagen Truck & Bus CEO Andreas Renschler said the industry giants will immediately commence cooperating with one another, adding that both companies should be stronger from the alliance.
The agreement also calls for Renschler and Volkswagen Chief Financial Officer Matthias Grundler to become members of the Navistar board of directors, the announcement said.
The venture will operate out of Navistar’s Lisle headquarters and operators will work on brands such as the Volkswagen Truck & Bus's Scania, MAN and Volkswagen Caminhões e Ônibus as well as Navistar's International and IC Bus brands.
Navistar executives expect more than $500 million to be generated from the venture over the next five years, according to the announcement.
Renschler’s resume includes being appointed a member of the Board of Management of Volkswagen AG in early 2015, where his responsibilities include overseeing Commercial Vehicles.
A native of Stuttgart, Germany, the Renschler began his career at Daimler-Benz AG in 1988. He has also held senior-level positions at Mercedes-Benz, including serving as president and CEO.
Grundler was appointed CEO and board member at Volkswagen Truck & Bus in Germany in 2015.
Grundler studied economics at the IFW in cooperation with the Daimler Academy, and in 1986 he joined the Daimler Benz, moving into his first management post with the company seven years later in the area of supply chain management.