Navistar International Corp. (IW500/102) and Volkswagen Truck & Bus finalized the equity- and technology-sharing “strategic alliance” that the two manufacturers announced last September. The deal — which centers on a VW buying 16.6% of Navistar for $256 million — includes a framework agreement for a procurement joint venture to be established by the two, as well as collaboration on product technology.
"This alliance with Volkswagen Truck & Bus marks a significant milestone in our company's history, and we expect it will create multiple benefits for both companies in both the near and long term," stated Navistar chairman, president, and CEO Troy Clarke. "Now that the transaction has closed, we will move quickly to collaborate with an industry-leading, strategic partner to increase our global scale, strengthen our competitiveness, and provide our customers with expanded access to cutting-edge products, technology and services."
VW’s investment also nets it two positions on the Navistar board of directors, to be held Andreas Renschler, CEO of Volkswagen Truck & Bus, and Matthias Gründler, CFO of the German group.