Could Volkswagen be in the market for a portion of Navistar?
German automaker Volkswagen's commercial vehicle division may open up its pocketbook to purchase a majority stake in Navistar.
"(Taking over Navistar) would make sense at some point," said Matthias Gruendler, finance chief of Volkswagen Truck and Bus, in a statement to reporters. "The cooperation (with Navistar) is working really well."
Valued at roughly $3.7 billion, Navistar is a U.S. manufacturer competing with Daimler and Volvo for truck market share. Currently, Daimler leads with roughly 40 percent market share for heavy-duty trucks, with Volvo making headwinds with a 2000 acquisition of Mack Trucks. The bulk of Navistar's sales comes from the U.S., Canada, and Mexico.
News of the impending purchase also drove up Navistar shares as high as 12 percent over the week after its announcement.
In 2016, Volkswagen Truck & Bus acquired 17 percent of the company in a bid to offset Daimler and Volvo, equivalent to a $256 million stake. U.S. regulatory rules would force Volkswagen to pursue a takeover, should it wish to move past its current ownership stake.
Enjoy the outdoors?
Sign up for daily stories delivered straight to your inbox.