Volkswagen purchases Navistar stake for $256 million in trucks push

Volkswagen has concurred an engine innovation and buying alliance with truckmaker Navistar, and will purchase a 16.6 percent stake in the United States firm for $256 million, as worldwide truck makers face high development costs to satisfy international anti-pollution rules.

The deal is anticipated to assist both sides cut expenses, give Volkswagen’s trucks business a long-desired grip in North America and supply a source of new engines for Navistar, which has actually been looking for a partner since its heavy-duty diesel truck engine couldn’t get approval from U.S. regulators in 2010.

Volkswagen’s next generation engine for MAN and Scania trucks are going to be adapted to match Navistar’s U.S. trucks at a time when worldwide anti-pollution guidelines are assembling, Volkswagen Trucks Chief Executive Andreas Renschler stated on Tuesday.