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Traton finalizes Navistar acquisition

July 1, 2021
The Volkswagen-owned truck maker will gain a foothold in the North American commercial vehicle market with the $3.7 billion deal after receiving regulatory approvals this week

Traton, Volkswagen AG’s commercial truck division, is set to close on its merger with Navistar International on July 1, after receiving all necessary regulatory approvals, the two companies announced on June 30.

Lisle, Illinois-based Navistar—founded as International Harvester Co. in 1902—will join Traton brands Sania, MAN, and Volkswagen Caminhões e Ônibusbrands to create one of the world’s largest truck manufacturers. The deal also gives the Volkswagen company presence in the competitive North American commercial vehicle market.

Germany-based Traton will also take over a Classes 6-8 truck manufacturing facility scheduled to open next year in San Antonio, a growing eMobility division, and an established partnership with leading engine maker Cummins (the two are collaborating on a fuel cell electric truck) and expanding relationship with self-driving truck startup TuSimple. Traton will also own IC Bus.

“Together, we will have an enhanced ability to meet the demands of new regulations and rapidly developing technologies in connectivity, propulsion, and autonomous driving for customers around the world," Traton CEO Matthias Gründler said in a statement when the acquisition agreement was first reached in October 2020.

Traton finalized the nearly $3.7 billion deal in November 2020 to acquire all outstanding common shares of Navistar—that it did not already own—for $44.50 per share in cash. Navistar stockholders approved the sale on March 2. 

This year, Navistar increased its production line rates in all of its vehicle assembly plants, including adding a second shift to its truck assembly plant in Escobedo, Mexico, the OEM announced in June. But the pace of the increases has been slower than planned due to supply chain constraints.

Along with Navistar’s new San Antonio factory, it is expanding its Huntsville, Alabama, engine facility, scheduled to open in early 2023.