Volkswagen is hoping to proceed with a three-way alliance of Scania, MAN and VW Commercial Vehicles after the MAN AGM on 10th May.

According to the German newspaper, Handelsblatt, there have been numerous contacts between VW and the Wallenburg family owned Investor group, which is the second largest Scania sharehaolder. The report says that a framework agreement for a possible merger has been set out.

The key issue on the Swedish side is that there should be no job losses at Scania. In addition Södertälje should remain as the headquarters of the company.

Volkswagen supervisory board chairman, Ferdinand Piech, is expected to be elected as chairman of the MAN supervisory board at the AGM. Volkswagen is the largest shareholder in MAN with almost 30% of the company. Volkswagen also owns 34% of Scania.