Negotiations between MAN, Scania and VW Commercial Vehicles are still not making any progress.

According to a report in the German news magazine, Focus, negotiations have ceased and no date has been set for a next meeting.

A Volkswagen spokesperson denied that talks were not progressing, according to the German press agency, dpa.

Focus, however, quoted one manager as saying that there is no chance of an agreement. Scania chief executive Leif Ostling is continuing to resist merger proposals and reportedly has made demands that Volkswagen cannot agree to. In particular Scania management wants the headquarters of any newly merged company to remain in Sweden.

Ostling is backed by Scania's second largest shareholder, Investor AB, that belongs to the Swedish Wallenberg family of industrial investors.

VW chairman, Ferdinand Piech, told Focus that a hostile takeover is not an option. A merger would only make sense if all parties were in favour.