Volkswagen has announced that it will sell its Brazilian heavy truck business to MAN.
MAN will pay EUR1.175bn for Volkswagen Caminhões e Ônibus Indústria e Comércio de Veículos Comerciais Ltda (VW CO), based in Resende. The sale is expected to be completed in the first quarter of 2009.
The move means that all of Volkswagen’s truck operations will be focused on its shareholdings in MAN and Scania. Volkswagen is the largest shareholder in both companies.
VW CO is the largest truck manufacturer in Brazil, It has 5,000 employees and produces medium and heavy duty trucks and city and tourist buses.
“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,” said Martin Winterkorn, Volkswagen AG chairman.
Volkswagen’s light commercial vehicle operations are not affected by the sale.