If Volkswagen agrees to take over MAN, the German truck units shouldn’t expect additional synergies.
“Each investor would have to decide for themselves at a shareholders meeting whether (approving a domination agreement) makes sense for them,” Frank Lutz told reporters in Munich.
Currently Volkswagen owns over 75% of MAN’s share and AGM proposed the company to take over full financial, operational and strategic control of the German truck unit. Volkswagen, which includes Skoda, Seat, MAN trucks, Audi and Scania in its stable of brands, reported an increase in net profit of 36% to 8.83 billion euro in the first half of this year.
“The Volkswagen Group’s main competitive advantages are its multibrand strategy, a range of vehicles that covers almost all segments from subcompact cars to heavy trucks and its growing presence in all major regions of the world, together with its wide range of financial services,” declared the company.
But although Volkswagen may see a tougher second half, as the German auto market begins to show signs of weakness in front of the European debt crisis. Analysts predict that the company will see demand down to 3.1 million units by the end of this year, from 3.17 million units in 2011.