Photo: Neil Abt/Fleet Owner
A Navistar truck on display at the Traton booth at IAA.

Navistar touts growing benefits from Traton alliance

Sept. 25, 2018
Navistar continues to see gains from its two-year-old partnership with Traton.

HANOVER, Germany. Navistar CEO Troy Clarke said the truck and engine maker continues to see gains from its two-year-old alliance with Volkswagen Truck & Bus, which is now known as Traton

Speaking during the IAA Commercial Vehicles show, Clarke said this was never just an “investment in the company, but an alliance” that offers significant purchasing power.

In September 2016, Volkswagen Truck & Bus purchased a 16.6% stake in Navistar. Just after that announcement, Clarke touted the possibilities of the deal during a joint appearance at the 2016 IAA show with Andreas Renschler, head of VW Truck & Bus. They have since announced plans for a new North American engine platform for 2021.

This June, VW Truck & Bus changed its name to Traton, which Renschler said was aimed at creating a separate identity from parent firm Volkswagen Group. Renschler is the former head of Daimler’s global commercial vehicles division. 

Traton also includes European truck makers MAN AG and Scania. Traton and Hino announced an alliance earlier this year, and during IAA announced plans to accelerate their joint focus on electric vehicle technologies. 

Walter Borst, chief financial officer of Navistar, noted Hino was brought into Traton after Navistar, a signal the agreement has been successful. He also noted that Traton has since raised its stake in Navistar to 17% by buying shares through the open market at a higher price than the initial deal. 

Earlier this month, Navistar reported fiscal third-quarter earnings of $170 million, or $1.19 a share, compared with $37 million, or 37 cents a year earlier. Revenues jumped 18% to $2.6 billion as sales of Classes 6-8 trucks in the United States and Canada gained 26%. 

Friedrich Baumann appeared with Clarke and Borst at the IAA press gathering. Baumann was hired earlier this year as Navistar’s senior vice president for joint strategy and planning. He was previously a top executive with Daimler Trucks North America. 

He said he believed Traton will help Navistar incorporate the latest technology "into our future product line as quickly as possible.
 

Sponsored Recommendations

Heavy-Duty Maintenance Checklist

A maintenance checklist can help ensure you hit everything necessary during an inspection. Check out our free downloadable checklist to help streamline your repairs.

Five Ways a Little Data Can Save Your Company Millions

While most trucking and logistics companies rely on cellular to keep their work fleet connected, satellite has the ability to connect anywhere and through small data transmission...

Fleet Case Study: 15% YOY Growth for ITDS

Learn how this small trucking company scaled significantly and maintained outstanding customer service without adding additional people. Sylectus TMS can automate operations and...

Unlocking Fleet Safety & Efficiency: The Managed Service Advantage

Want to boost your fleet's safety and efficiency? Tune in now to discover the power of Managed Services in optimizing your safety program, streamlining operations, and making ...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!