Report – VW’s truck business in focus image

Sources close to the matter reported that Volkswagen is going to focus a board meeting later this week on its ambition to transform the truck operation into the world’s biggest – which could also prompt the hire of Andreas Renschler, a truck executive veteran from Daimler.

Daimler, currently the world’s biggest truck maker, is still not challenged enough by VW’s truck alliance, which invested billions of euros into buying controlling stakes at Sweden’s Scania and Germany’s MAN – an alliance that should have saved costs and become the No.1 player.

Two sources, which declined to reveal their identity because the matter is confidential, told Reuters that VW’s board of directors meeting due on Friday to discuss 2013 earnings, would also focus its attention on the now eight-year effort to create the Europe’s top heavy-duty commercial vehicles manufacturer.

“VW can’t be satisfied with the state of the trucks alliance and will want to raise its clout at Scania,” Marc-Rene Tonn, analyst with Hamburg-based M.M. Warburg, said.

VW is aiming for cost savings of around 200 million euros on its truck-making business, while over time the final goal is to jointly develop everything, from components to engines and platforms.

According to the sources, the board is also growing frustrated with the progress (or lack of) registered under the current truck chief, 68-year-old Leif Oestling – who still has a contract with them until 2015. This is why has been reported that VW wants Renschler for the commercial-vehicle division – although the situation is rather delicate, with Daimler boss Dieter Zetsche saying he cannot join a rival carmaker soon.

Via Reuters