Bruce Barnard, Special Correspondent | Jun 11, 2012 9:20AM EDT
Volkswagen, the German auto and commercial vehicle manufacturer, is mulling the purchase of a stake in U.S. truck maker Navistar International, according to media reports.
A stake in Navistar would help Volkswagen to better compete with its domestic rival Daimler Trucks, the world’s biggest commercial vehicle manufacturer, which owns U.S. truck maker Freightliner, the Financial Times Deutschland said.
Volkswagen does not have a major presence in the U.S. truck market, with its two subsidiaries, Sweden’s Scania and MAN of Germany, mainly active in Europe as well as Brazil and other emerging markets.
Daimler’s Freightliner unit competes in the U.S. with Sweden’s Volvo, which owns Mack Trucks, Navistar International and Paccar’s Peterbilt and Kenworth brands.
Volkswagen has declined to comment on the report, which says it is in the early stages of deciding whether to bid for a stake in Navistar.
Navistar shares rose by almost a fifth on Friday after activist investor Carl Icahn raised his stake in the company to almost 12 percent. Navistar last week reported it swung to a $172 million loss in the second quarter from a $74 million profit a year ago.
Italian truck maker Fiat Industrial is also interested in the U.S. market, the firm’s chairman Sergio Marchionne said.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
