Volkswagen to Take Control of Scania, Stepping up Commercial Vehicle Efforts
May 13, 2014
Volkswagen has taken an important step forward in creating a global truck alliance to compete with its rivals, including fellow German company Daimler.
Its $9.2 billion offer to buy out the truck-making arm of the Swedish vehicle manufacturer Scania has been accepted, according to published reports.
VW already owns a majority stake in Scania and has been an investor since 2000. It produces commercial vehicles under its banner as well as MAN, which it also controls.
The move follows Andreas Renschler, the former head of Daimler Trucks who left in January, accepting a post with VW in February. He will become a member of VW's board of management effective Feb. 1, 2015, once a non-compete agreement with Daimler is over. Renschler will take over for Dr. Leif Östling, who will continue to work with the commercial vehicles supervisory bodies in the Volkswagen Group.
"We can now take the next logical and consistent step in our strategy to strengthen the operating integration of Scania, MAN and VW commercial vehicles," said Chief Executive Martin Winterkorn at VW's annual shareholder meeting in Hanover, Germany.
Read more about it from Reuters or the New York Times.