Volkswagen Buys Stock in Major Trucking Company
Recently Volkswagen announced that it had purchased stock in Navistar, a trucking company based in Illinois. This type of partnership could have major ramifications within the trucking industry as a whole. After moving past a rough period involving a well-publicized emission scandal, Volkswagen is eager to expand their business.
Navistar is a well-known carrier that also owns International Trucks. The deal reached between Volkswagen and Navistar gives VW 16.6 percent stake in the company – which equates to $256 million. This provides some much-needed stabilization for the organization.
VW was asked about whether or not their organization could procure the rest of Navistar or even create its own trucking business. Management within the company is not ruling out anything, as the organization is looking to move forward positively after their previous issues.
The partnership helped Navistar recover, as well. After spending billions of dollars on a diesel engine, the new technology failed to achieve approval by the EPA. In addition to the funding, the overall partnership will help Navistar to bounce back and reestablish themselves as a stable and growing name in the industry.
Meanwhile, VW continues to negotiate with prosecutors from the Department of Justice concerning their diesel emissions scandal. After attempting to reach a settlement with federal regulators, the company was then sued by several US states. VW hopes to settle the issue before the end of the year.