Volkswagen plans to make an acquisition for its trucks in North America if the best opportunity occurs, regardless of the increasing expense of its “dieselgate” emissions cheating scandal, the head of the trucks division informed Reuters.
Andreas Renschler stated his primary focus stayed on deepening cooperation in between Volkswagen’s truck brands – MAN and Scania – a procedure started last year and aimed at saving up to 1 billion euros ($1.1 billion) a year by 2025 from joint procurement and advancement of gearboxes, axles and engines.
However he stated Volkswagen’s absence from the profitable North American trucks market was something he wished to attend over the longer term, as he looks for to construct a worldwide company to challenge rivals Daimler and Volvo.
And he stated Volkswagen management’s support for such a relocation was as strong as prior to the company was engulfed in a damaging and pricey scandal over cheating emissions tests last year.
“The concern is whether you attempt to discover options or hide away in the corner,” he said. “We are looking ahead.”
Volkswagen stated on Wednesday it was going for another 2.2 billion euro ($2.4 billion) one-off hit in its first half results – on top of the 16.2 billion euros it has actually already reserved to cover the costs of its emissions test cheating, consisting of repairing vehicles and a settlement with U.S. officials.
Some experts had speculated Volkswagen may offer or spin off its trucks business to assist raise funds, but it explained in a technique overhaul in June it had no strategies for significant asset sales.
First-half incomes figures on Wednesday likewise signaled the business’s healing may be acquiring momentum.
Renschler stated in an interview that Volkswagen was under no pressure to do a trucks deal in the United States, including it was essential to select the ideal moment to take the right action.
He also refused to talk about possible offers. Experts have actually recommended Navistar International Corp or Paccar Inc as plausible acquisition targets or partners.
Renschler stated a public listing for Volkswagen’s trucks company was not a top priority at the moment, though all choices were being kept open to that end, he included, without being more particular.
The trucks made 24.4 billion euros of sales last year, from a Volkswagen group overall of 213.3 billion.
