Volkswagen Increases Stake in MAN Trucks to Challenge European Rivals
Company Seeks Greater Integration with Scania, VW Commercial Units
Volkswagen's global ambitions would make Pierce Brosnan jealous, as it seems the world is truly not enough for the German auto titan -- at least not just the passenger-car world. Germany's largest automaker increased its stake in German heavy-truck maker MAN from 53.7 percent of share capital to 71 percent last week.
Reuters reports the increased stake will allow VW to integrate MAN more closely with Sweden-based Scania, in which VWAG also holds a controlling stake. By consolidating procurement, production, and research and development between the two brands, the company is hoping to save more than $250 million a year.
The corporate consolidation could help put VW ahead of key European heavy-truck rivals Volvo and Daimler. Volkswagen holds 71.8 percent of Scania's votes, and 49.3 percent of total capital in the brand.