Volkswagen to buy minority stake in US rival Navistar
German vehicle manufacturer Volkswagen is to buy a minority stake in its US rival Navistar, in order to compete in the global truck market, according to the Financial Times.
Audi Ag
0.00p
07:45 20/03/24
Volkswagen AG
€137.10
17:19 25/04/24
The transaction, which will see Volkswagen take over 17% of the company, is expected to be announced on Tuesday.
Volkswagen will pay around $16 per share for the stake, investing roughly $200m in Navistar as it continues to negotiate its way to a resolution following the emissions scandal of 2015.
It is estimated that "Dieselgate" has cost the German company $20bn so far, and may cause further long-term damage to its fortunes.
Navistar has also faced issues over its own emission scandal, in which it agreed to pay the Securities and Exchange Commission $7.5m over the misleading of its investors surrounding its ability to comply with US environmental standards.
The US company does most of its business in North and Central America, in a truck market in which demand has eased off. The production of heavy-duty trucks is due to fall this year by about a third.