Volkswagen Truck & Bus says no decision yet on listing

[kscarbel2]

Reuters  /  June 22, 2018

* VW Truck & Bus says no decision has been made about IPO

* Says immediate goal is to reach capital markets readiness

* Manager Magazin says 25 pct stake to be listed in summer 2019 (Adds VW comment, further quotes from magazine interview)

FRANKFURT, June 21 (Reuters) - Proceeds of more than 6 billion euros ($6.9 bln) would flow to parent Volkswagen AG if it decides to list its truck and bus subsidiary, the division's chief executive told Manager Magazin as he set out the company's ambitions.

Manager Magazin said a listing of around 25 percent was being planned for summer 2019.

Wolfsburg-based VW has plans to build a global trucks business by integrating its MAN and Scania divisions and building its stake in U.S. truck maker Navistar to challenge rivals Daimler and Volvo.

Volkswagen has said it is considering a listing or partial listing of the division but has ruled out any listing in 2018.

"First of all the supervisory board of Volkswagen AG would need to formally approve an initial public offering," the division's chief executive Andreas Renschler was quoted telling the monthly German Manager Magazin.

"Nothing is decided, but the proceeds would flow to our shareholder," he said.

A spokeswoman for VW Truck & Bus confirmed to Reuters that no decision had yet been taken about the timing and size of a separate stock market listing.

Volkswagen Truck & Bus, which will be renamed Traton, will convert into a Societas Europaea in the fall, paving the way for a possible listing, Renschler told Manager Magazin.

By listing on the stock market, further expansion would be easier, thanks to new refinancing possibilities Renschler went on to say.

When asked whether VW Truck & Bus could raise up to 6 billion euros with a listing, Renschler told the magazine: "It could also be more."

A flotation could allow Volkswagen Truck & Bus to build a war chest to buy out Navistar completely, a U.S. truck maker in which it already owns 16.85 percent.

Regulatory filings by the U.S. truck maker from April showed that Volkswagen could take full control.(https://bit.ly/2H95QNY)

Asked whether VW Truck & Bus could buy out Navistar, Renschler said: "We only said that we think this is a sensible option, but never commented on when we will do this. Our strategic projects with Navistar are working well even without having a majority."

Asked whether Volkswagen Truck & Bus would consider increasing its 25 percent stake in Sinotruk, Renschler told the magazine: "Sinotruk is a very successful company, it has developed in a fantastic way in the past ten years. This is why we are discussing ways to develop our relationship with Sinotruk further." ($1 = 0.8668 euros)

[Maxidyne]

Wish they'd spend more time engineering better products instead of re-engineering corporations. VW has been in bed with International for long enough that we should be seeing some results like Scania V8s in International conventionals and Transporter and Crafter vans at the local International dealers.

[Red Horse]

Well to ad to the mix, VW and Ford announce they are exploring some sort of joint effort.

 this is an excerpt from a Motley fool story yesterday;

Why Ford and VW might team up on commercial vehicles

The one area of potential cooperation that Ford and VW chose to call out in their statement -- commercial vehicles -- is interesting. It's one part of the vehicle market where VW's and Ford's strengths and are complementary.

Ford, of course, is a major player in commercial vehicles in the U.S. and Europe. Not only does it sell hundreds of thousands of F-Series pickups to commercial customers every year, its Transit line of commercial vans is a global best-seller. But (by truck standards, at least) those are mostly smaller vehicles; while Ford does have a heavy-truck business, it's fairly small -- and it doesn't make anything like a big tractor-trailer truck or a full-size bus.

VW, on the other hand, does make big trucks and buses. Its Scania and MAN subsidiaries, which build heavy trucks, buses, and big engines, generated over 27 billion euros ($31 billion) in revenue last year. There's also a VW-brand commercial-vehicle business, which makes vans and a small pickup that compete with Ford's offerings, but its global sales trail Ford's in those segments.

Could Ford benefit by working with VW on heavier trucks? Could VW benefit by working with Ford on commercial vans? Could both benefit by pooling their technology and knowledge, perhaps in a joint effort to create self-driving commercial vehicles?

Note this makes no mention of VW's 17% stake in Navistar and it makes no mention of the big trucks VW builds under its own flag.  Makes me wonder, why would VW want to help Ford, once one of International's strongest competitorws in class 7 and 8, get back in business?  

Unless of course their attitude is they want a piece of EVERY pie that is out there.

And as for the other side of this coin, if their interest is just in the small commercial van business, what's in it for Ford who is I think the true gorilla in the world market with all the Transit variations.

How about it KSC, your view on this.

[Dirtymilkman]

Motley fool never has actual facts. It's always just speculation in their articles. Very left leaning too. 

[RoadwayR]

It looks to me like VW wants to cooperate with Ford on Commercial vans for Europe, nothing more.  If it's anything beyond that the only scenarios I see are VW taking over Ford's South American truck operations and maybe Otosan.  With VW's strength in South America Ford's truck operation there is a natural fit, and a way for Ford to begin pulling out of a money-losing operation.  As for Otosan that might make VW's truck operations in Eastern Europe/Western Asia stronger.  Such a move could be more beneficial to Otosan than VW, figuring VW could supply components to Otosan.  I can't see any scenario in which VW would be interested in Ford's U.S. truck operations, particularly given VW's relationship with NAV..  

I looks like a win-win for Ford and VW in European commercial vans.  VW gets back into the business with a new partner to share costs with, Ford's van operation becomes more profitable, very important in the wake of Brexit.   

 

 

 

[kscarbel2]

7 hours ago, RoadwayR said:

It looks to me like VW wants to cooperate with Ford on Commercial vans for Europe, nothing more.  If it's anything beyond that the only scenarios I see are VW taking over Ford's South American truck operations and maybe Otosan.  With VW's strength in South America Ford's truck operation there is a natural fit, and a way for Ford to begin pulling out of a money-losing operation.  As for Otosan that might make VW's truck operations in Eastern Europe/Western Asia stronger.  Such a move could be more beneficial to Otosan than VW, figuring VW could supply components to Otosan.  I can't see any scenario in which VW would be interested in Ford's U.S. truck operations, particularly given VW's relationship with NAV..  

I looks like a win-win for Ford and VW in European commercial vans.  VW gets back into the business with a new partner to share costs with, Ford's van operation becomes more profitable, very important in the wake of Brexit.

VW already has a new plant in Poland producing an all-new VW-designed Crafter, and it's very good (The previous Crafter was based on the Sprinter, purchased from Daimler and VW-powered).

But the Transporter and Caddy are nearing the end of their life cycle......that might be the catalyst for exploratory talks with Ford.