Truck business concentrated in MAN and Scania shareholdings
Long-term perspective for further development of VW CO
Wolfsburg, 15 December 2008 - Volkswagen AG is to sell its heavy truck business in Brazil to MAN AG, Munich. MAN will purchase Volkswagen Caminhões e Ônibus Indústria e Comércio de Veículos Comerciais Ltda (VW CO), Resende, for an enterprise value of €1.175 billion. Volkswagen anticipates that the sale will be completed in the first quarter of 2009.
With the sale of VW CO, the Volkswagen Group is focusing its involvement in the truck business on its existing shareholdings in MAN and Scania and on its own business with light commercial vehicles which is not affected by this transaction. VW CO produces trucks and buses designed for use in developing countries and has become the largest truck maker in Brazil since it was established in 1981. In the 2007 financial year, the fast growing company, with 5,000 employees working in Resende and at partner suppliers, built approximately 47,000 vehicles exported to over 30 countries. The product portfolio comprises medium- and heavy-duty trucks as well as urban buses and long-distance coaches.
"This decision is a further logical step for us in the truck business and at the same time brings our Brazilian commercial vehicle activities an attractive perspective in an alliance with a leading truck maker. It is obvious that VW CO and MAN complement each others activities very well and have significant synergy potential. We are convinced that VW CO customers and employees will benefit from this step," Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG, commented.
Following the purchase, MAN will continue to conduct this business under the Volkswagen brand name and will cooperate closely with the management and employees in Brazil. The company’s registered office and jobs will not be affected.
Going forward, the Volkswagen brand will be concentrating on its core business with passenger cars and light commercial vehicles. As an independent brand in the Volkswagen Group, Volkswagen Commercial Vehicles will focus exclusively on light commercial vehicles. "With its present vehicle program and a new robust pickup model range, Volkswagen Commercial Vehicles will continue on its profitable growth course and develop new markets," Stephan Schaller, Speaker for the Board of Management of Volkswagen Commercial Vehicles, pointed out, adding that the brand’s core competence as a manufacturer of light commercial vehicles would be strengthened.
The shareholdings in MAN and Scania underscore Volkswagen’s strategic interest in the truck business. Volkswagen and its shareholders will continue to benefit indirectly from the future growth and earnings potential of VW CO via the 29.9 percent stake in MAN.