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Volkswagen sells heavy truck
business in Brazil to MAN
Wolfsburg - 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.
(December 15, 2008)