Volkswagen announced its truckmaking subsidiaries MAN and Scania will have closer ties in the future, denying a report that wrote the plan for a deeper integration had been dropped.
Analysts said the plans for a tie-up were going slowly and that the slow pace of implementation suggested the full merger of the two companies was probably called off. VW had said MAN and Scania could develop substantial synergies that would help the group’s drive to take on global market leader Daimler and world number two Volvo. The four areas of cooperation intended for MAN and Scania are axles, gearboxes, commodity purchasing and joint research on hybrid components for heavy trucks and buses.
“Our plans remain unchanged,” a VW spokesman was quoted as saying by Reuters. A MAN official also said cooperation talks were continuing. Swedish newspaper Dagens Industri reported unnamed sources as saying VW chairman Ferdinand Piech was no longer pushing for complete integration as long as Scania continued to be as highly profitable as it currently is.
“We don’t really recognize what was reported in the newspaper. We have had working groups with VW since last year looking into possible areas of cooperaton. These talks are on their way and they are going on in a constructive and positive way,” Scania spokesman Hans-Ake Danielsson said.
VW holds a 55.9 percent stake in Munich-based MAN and 70 percent in Swedish truck maker Scania.