kscarbel2 Posted September 20, 2018 Share Posted September 20, 2018 Jeff Crissey, Commercial Carrier Journal (CCJ) / September 19, 2018 During a press gathering at IAA 2018 in Hannover, Germany, Navistar executives updated the company’s position within Traton Group, Volkswagen Truck & Bus’s alliance group formed earlier this summer that includes subsidiary companies and joint venture partnerships. Two years ago, VW purchased more than 16 percent of Navistar’s shares and gained two board seats. In addition, the two companies entered what would become the first joint venture for the Traton Group aimed at creating cooperative alliances, leveraging scale for raw materials and components, global expansion and elevating brand performance for companies across the group. VW since has increased its investment in Navistar stock to 17 percent. “The purpose of the procurement joint venture is to provide us and them access to scale,” said Troy Clarke, Navistar president, chairman and CEO. “When you put our volumes together, it becomes a very sizable procurement enterprise.” The JV also allows Navistar and alliance partners to license technology and the opportunity to participate in new technology development. “We are on path with the synergies that we publicized back when we announced the [procurement joint venture],” said Walter Borst, Navistar chief financial officer. “We said we would have $500 million in cumulative synergies in five years… I’m happy to say that a year and half year in we are on track. In 2018, it already is making a positive impact to our bottom line.” Just before IAA 2018, Traton Group announced its second OEM relationship when it signed a joint venture with Hino Trucks and now have a stake in Chinese truck manufacturer Sinotruk. “The opportunities are more significant than what we originally thought,” said Borst in terms of technology sharing and future product development that includes powertrain integration with Traton family members by 2021. “Starting in 2020 and going forward, you will see more integration of our product with offerings you see [from other alliance partners],” said Friedrich Baumann, senior vice president of strategy and planning. . Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted September 21, 2018 Author Share Posted September 21, 2018 Navistar already benefits from Traton alliance: Clarke John G. Smith, Truck News / September 20, 2018 HANNOVER, Germany – Navistar is already realizing the benefits of extra purchasing power made possible through a 17% equity stake secured by Volkswagen Truck and Bus – recently rebranded as Traton Group. A related joint venture for procurement activities offered the business access to a bigger scale, Navistar president CEO Troy Clarke said during the IAA truck show in Germany. There have also been opportunities to licence technology and participate in related research and development. A Traton-developed powertrain is in the works for use in Navistar trucks, and is expected in 2021. “We were the first alliance partner of what is now Traton, and that was a multi-year journey,” said Clarke. “At the end of the day, [chief executive officer] Andreas Renschler and leadership at Traton said this is a company that has more good days ahead of it than bad days ahead of it.” There were certainly some challenges, but Navistar is now enjoying black ink in its business ledgers. The business has improved its EBITDA six years in a row, and is now making net income rather than recording losses. “It’s really been, financially, on a good path,” said executive vice-president and chief financial officer Walter Borst. Through shared procurement the companies expect to save $500 million over five years, and realize a $200 million run rate by the fifth year. “We’re on track to do this,” he said. A Traton joint venture with Hino is also looking to secure savings in a similar way. Traton has demonstrated further faith in Navistar by increasing its stake over the original 16.6%, buying shares on the open market and at rates higher than those paid when securing the first shares, Borst added. The deal involving the original equity stake closed in March 2017. Navistar has also hinted at a new product to be launched in early November. . Quote Link to comment Share on other sites More sharing options...
RoadwayR Posted September 21, 2018 Share Posted September 21, 2018 New product might be the International version of the GM JV medium duty truck. 1 Quote Link to comment Share on other sites More sharing options...
james j neiweem Posted September 21, 2018 Share Posted September 21, 2018 Navistar is in the VW quick sand. Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted December 9, 2018 Author Share Posted December 9, 2018 Traton holds group conference in Munich Linkedin / December 3, 2018 Global collaboration is king! For the Alliance Leadership Conference our partner Navistar Inc and our TRATON brands MAN Truck & Bus AG, Scania Group, MAN Latin America and RIO The Logistics Flow came together in Munich. . Quote Link to comment Share on other sites More sharing options...
james j neiweem Posted December 11, 2018 Share Posted December 11, 2018 Volkswagen/Traton says ummmm Navistar taste good. I do like the looks of that MAN cabover. Quote Link to comment Share on other sites More sharing options...
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