German truckmaker MAN finds Navistar stake appealing; OEMs expanding component ties
FRANKFURT, Germany -- Navistar International and MAN Nutzfahrzeuge have strengthened ties in recent years and now the German truckmaker says it could envision a day where it owns a piece of its Chicago-based partner. According to Reuters, a spokesman for Europe's third-biggest truck and engine manufacturer said the company intends to continue growing its relationship with Navistar, including perhaps venturing overseas and grabbing a stake in the company, which produces International brand trucks. Chief Executive Hakan Samuelsson made the remarks in an interview with a Swedish newspaper, but said that no official talks with the company's American counterpart were under way. "We find Navistar interesting. I think that we should over time cement somehow our cooperation, including by becoming part owners," Samuelsson was quoted as saying. In 2004 International and MAN announced a joint strategic agreement to collaborate on design, development, sourcing and manufacturing of diesel engines, as well as components and systems for commercial trucks. Last year, International unveiled its first proprietary heavy-duty, big-bore engine, which is based off of MAN's European D20 engine. "We are in preliminary talks on strengthening our engines cooperation and a joint plant will be on the agenda in 2007," Samuelsson told paper. "We are also talking about cooperation in axles and electronic systems." Navistar Chief Executive Daniel Ustian told Reuters that the two companies were exploring ways to expand their alliance, but a direct merger was not part of the plan. MAN has also shrugged off speculation it's interested in acquiring Volkswagen's 34 percent stake in Scania trucks. International is a North American favorite in the medium-duty market. However, the company made a big splash earlier this year when it unveiled its long-awaited flagship class 8 highway truck, the ProStar. The truck, which will be built at the company's manufacturing plant in Chatham, Ont., focuses on fuel economy, aerodynamics, and driver environment. -- with files from Reuters