Renschler dampens expectation: IPO for VW truck boss not identified

04/16/2018

Renschler dampens expectation IPO is not made for VW truck boss

[M] PR

The truck brands of the Volkswagen Group are growing together, but an IPO is not necessarily linked to this

Volkswagen wants to transform its commercial vehicle division Truck & Bus into a public company. An IPO is according to truck boss Andreas Renschler not necessarily connected.

On initial public offering According to CEO Andreas Renschler, the VW truck and bus division Truck & Bus with the MAN and Scania brands will be available in one year at the earliest. “But that does not automatically mean that we go public,” said the manager on Monday in Munich. The division also wants to be strong in the United States and Asia by 2025 and be the most profitable truck manufacturer.

In the next twelve months, VW Truck & Bus wants to transform into a European stock corporation and become marketable. Thus, the division is more flexible and have additional opportunities to get money for growth, explained Renschler. Whether and when an initial public offering will also depend on the environment.

The US truck manufacturer Navistar holds VW Truck & Bus today 16.9 percent. From 17 percent VW would have to make a takeover offer to all Navistar shareholders.

Also read: How the truck business becomes Volkswagens Mustersparte

The MAN division Diesel & Turbo will be spun off from the MAN Group and directly subordinated to the VW Group, said Renschler. This area would not fit into a “stock market story” of the truck sector.

Volkswagen prepares its commercial vehicle division for the capital market. Last week, the Supervisory Board decided to convert the subsidiary Truck & Bus GmbH into a stock corporation. According to insiders, a gear is aimed at the parquet for the opening quarter of 2019.

rei / dpa / Reuters

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