Volkswagen AG has announced plans to postpone an initial public offering of the company’s wholly owned truck-manufacturing subsidiary Traton Group, formerly Volkswagen Truck & Bus, due to uncertain market conditions.
The decision to postpone a spring flotation of Traton Group surprised some market analysts who called it a “near-term disappointment.” According to analysts at Loom Capital, the move was spurred by poor market conditions and slowing fundamentals in Europe and China. This is likely in reference to the Brexit conundrum in the United Kingdom and the trade conflict between the U.S. and China, according to Reuters.
Traton Group is a leader in the European Truck market and includes the MAN and Scania brands and also operates in the Brazilian truck market as Volkswagen Caminhões e Ônibus. It owns a minority stake in Navistar in the United States as well as in Japan's Hino.
Earlier this year, Traton announced increased sales in 2018 and company CEO Andreas Renschler said that the company had fully achieved its targets.