Volkswagen, the German automotive company which includes the Scania and MAN brands, agreed to a partnership with Navistar International, the American truck producer. Volkswagen will supply engines to Navistar and will acquire a 16.6 per cent stake in the American company.
The acquisition will also positively affect the business of MOTOR JIKOV GROUP. “As a supplier of engine parts for Scania and MAN trucks, it means a further growth of business volumes for us in the future. A gradual minimal increase of deliveries by 30 per cent from 2018 has already been planned in connection with the new platform of gear boxes and engines within the Truck & Bus Division of the VW concern, including the above-mentioned Scania and MAN brands and VW utility vehicles. In addition, a gradual rise in the volume of deliveries of the new Scania truck parts has been planned, which was introduced to the market at the end of August. The entrance of Volkswagen to Navistar means a further potential increase of approximately thirty per cent,” said Tomáš Prášil, Director of Project Management at the MOTOR JIKOV Group.
The MOTOR JIKOV Group currently supplies almost 80 parts for engines and gear boxes for Scania’s old and new generation of vehicles. It has also supplied parts for MAN vehicles from this year, when the planned synergies within a development and purchase of components of both producers were applied and fulfilled. The increase of the production volume of engine parts and deliveries for the Navistar Company will affect about 30 components.
Volkswagen is the largest producer of passenger vehicles in Europe and the second largest in the world. However, it is also emerging as a leading global player on the truck market and it has already acquired majority shares in the MAN and Scania companies. Navistar has been trying to find a partner that would help it with the financially demanding task of developing engines that meet stricter emission regulations. Navistar is attractive for Volkswagen due to a large sales network in North America.
