News Volkswagen Truck & Bus Acquires Stake in Navistar, IC Bus WRITTEN BY RYAN GRAY |
RYAN@STNONLINE.COM
Navistar CEO Troy Clarke (middle, left) and Volkswagen Truck & Bus CEO Andreas Renschler (middle, right) sign the strategic alliance between Volkswagen Truck & Bus and Navistar International Corp. on Sept. 6 in Lisle, Illinois.
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avistar provided a “35,000-foot level” overview of its new stra- tegic alliance with Volkswagen Truck & Bus last month that
ushers in a new player to the school bus manufacturing market and new technologi- cal expertise to the IC Bus brand. Te initial acquisition entails 16.6-per- cent stake in Navistar by Volkswagen’s medium- and heavy-duty commercial division. Andreas Renschler, president and CEO of Volkwagen Truck & Bus, told investors and the media following the announcement on Sept. 6 that “all options are open” regarding a potential outright acquisition of Navistar and its business. But for now, the deal was “the next step on our way to becoming a global champion in the commercial vehicles industry.” Both companies said the timing of the alliance had nothing to do with the recent $14.7 billion settlement Volkwagen AG reached with the U.S. EPA regarding fraud- ulent software to cheat diesel emissions tests. Up until now, Volkswagen Truck & Bus has had less visibility in the lucrative North American market, something the
company is now poised to change. Troy Clarke, president and CEO of Navis-
tar, said the partnership focuses long term on an extensive list of powertrain technology solutions delivered to Navistar by 2019. Te companies jointly said they will share the overall costs of future vehicle development as well as developing advanced driver assistance systems, connected vehicle solutions, platoon- ing and autonomous technologies, electric vehicles, and cab and chassis components. Additionally, the alliance means greater
purchase power in the short term “through global scope and scale,” said Clarke, and Navistar products will also benefit from Volkswagen Truck & Bus components and technology through licensing and supply agreements. Trish Reed, vice president and general manager of IC Bus, said the alliance signals “an exciting time” for the OEM, dealers and customers, alike. She added that the $256 million equity investment in Navistar will boost the expansion of the current me- dium-duty engine offerings, which includes offering the Cummins L9 on the RE Series, further production of CE Series Propane
24 School Transportation News • OCTOBER 2016
school buses and the introduction of the gasoline-powered CE Series, which was unveiled in July at the STN EXPO. “Te planned alliance will enable Navis- tar to offer customers expanded access to leading-edge products and services through collaboration on technology and the licensing and supply of Volkswagen Truck & Bus’s products and components, while better optimizing product development spend,” she said. One of the biggest questions coming
from customers was what the news will mean to the existing engine partnership with Cummins. Navistar and Volkswagen Truck & Bus said their alliance will intro- duce Volkswagen engines into the truck and bus lineups, but likely not for another couple of years. Navistar and IC Bus executives con- tinued to speak of the longevity of the relationship with Cummins, Inc. “We value our relationship with Cummins and our intent is that they will remain an important supplier of engines and aftertreatment over the longer term,” a Navistar spokesman told STN. l
CELEBRATING25YEARS
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