Volkswagen gets approval on MAN deal


Volkswagen has been cleared to increase its shareholding in bus and truck manufacturer MAN

By Gary Worrall | September 27, 2011

 

The European Union commission has cleared the way for German manufacturer Volkswagen to increase its shareholding in bus and truck manufacturer MAN.

The new move will give Volkswagen 55.9 percent of the voting rights in MAN, as well as a total ownership of 53.71 percent of the share capital, completing its bid to become the company’s effective owner.

In a short corporate press statement, Volkswagen says the decision is an ‘Important milestone towards an integrated commercial vehicles group’.

In addition to the controlling stake in MAN, Volkswagen already owns 70 percent of Swedish truck manufacturer Scania, which in an ironic twist was itself the target of an attempted takeover by MAN in 2007.

With a significant light commercial division under its own brand, as well as the two truck brands, Volkswagen says ‘substantial synergies can be realised through a closer cooperation of MAN, Scania and Volkswagen in the fields of procurement, development and production’.

During a recent meeting with Australian transport journalists at the Scania head office in Sodertalje, Sweden Scania executive board member and head of factory and franchise sales Martin Lundstedt said Scania and MAN are already combining resources.

Despite ‘synergies’ offered by the combined manufacturers, Lundstedt ruled out MAN using Scania’s 16.4-litre V8 in its Euro 6, describing it as ‘not likely’ to happen.

Currently MAN offers a 500 kW, 16.2-litre unit that meets Euro 5 EEV (enhanced environmentally friendly vehicles), however it is not clear what will be used to replace it at the end of its design life.

With a strong presence in the healthy South American and Russian markets, which are also being targeted by Scania, shared engineering would reduce development and manufacturing costs in the same way Daimler Trucks will use the Detroit Diesel DD16 16-litre engine in all heavy duty applications, including Mercedes-Benz, Western Star and Freightliner from Euro 6 onwards.

 

 

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