Photo: Neil Abt/Fleet Owner
Navistar

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.
 

About the Author

Neil Abt

Neil Abt, editorial director at Fleet Owner, is a veteran journalist with over 20 years of reporting experience, including 15 years spent covering the trucking industry. A graduate of American University in Washington, D.C., he began his career covering sports for The Washington Post newspaper, followed by a position in the newsroom of America Online (AOL) and then both reporting and leadership roles at Transport Topics. Abt is based out of Portland, Oregon.

Voice your opinion!

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

Sponsored Recommendations

Route Optimization Mastery: Unleash Your Fleet's Potential

Master the road ahead and discover key considerations to elevate your delivery performance

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...