Navistar International Tuesday announced a strategic alliance with Volkswagen Truck & Bus, which includes an equity investment in Navistar by Volkswagen.
In the near term, the alliance will focus on developing common power train systems that are set to be delivered to North American customers by 2019.
Navistar President and CEO Troy Clarke says the long term goal of the joint-venture is to expand the technology options available to customers, like advanced driver assistance systems, connected vehicle solutions, cabin and chassis components and fuel efficiency technologies.
“The alliance brings together two companies with complimentary market positions,” says Andreas Renschler, CEO of Volkswagen Truck & Bus and member of the Board of Management of Volkswagen AG responsible for commercial vehicles. “Together we cover about 75 percent of the global profit pool.”
As part of the deal, Volkswagen Truck & Bus gets 16.2 million newly issued shares in Navistar – a 16.6 percent stake in the company – and two seats on the company’s board of directors. Navistar gets $256 million – a valuation of $15.76 per share and a 12 percent markup of the stock’s price at close Friday.