Truck department of German manufacturer Volkswagen AG: VW Truck and Bus considers entering into the capital of GAZ Group, as well as expanding the cooperation in accordance with the letter of intent signed in June.
The letter of intent signed in June between Volkswagen Truck and Bus and GAZ Group proposes the expansion of cooperation in many areas. The companies are currently looking into different variations, including the participation of the truck department of VW in the relevant projects of GAZ Group, as explained by the aforementioned source.
The joint activity of the German car manufacturer Daimler KAMAZ is an example of such cooperation, the source said. There’s a similar discussion between Volkswagen AG and GAZ Group, he added.
As stated by the general director of VW Truck & Bus: Andreas Renschler during an interview with the German magazine Manager Magazin on Thursday, the parties are weighing up different options. “For example, we could supply GAZ Group with truck cabins from our Brazilian plant. Cooperation in the LCV segment is another possibility: we have VW Crafter and MAN TGE (the manufacturer of buses and commercial vehicles MAN belongs to VW Group – Interfax) and GAZ has GAZelle. Why don’t we combine them on one platform in future?” – explained the top manager.
Answering the question about the prospects of Volkswagen’s entry into the capital of GAZ, following the example of a deal with the American truck manufacturer Navistar (VW purchased 16.6% of the company’s capital in September 2016, without ruling out further increase in shares), Renschler expressed interest in such a transaction.
GAZ Group declined to comment and Volkswagen could not provide a prompt comment.
MAN, Scania and Volkswagen Caminhoes e Onibus operate under the umbrella of Volkswagen Truck & Bus.
GAZ Group unites 13 enterprises in 8 regions of Russia, manufacturing light and medium weight commercial vehicles, buses, heavy trucks, cars, powertrains and auto components. In particular, Volkswagen automobiles (VW and Skoda) and Mercedes Sprinter Classic LCVs are manufactured in the facilities of the company. The engineering holding Russian Machines, which belongs to Basic Element industrial group of Oleg Deripaska, is the main shareholder of the company.