Volkswagen VOWG_.p.DE plans to further increase its voting rights in MAN within the next twelve months, depending on market conditions.
VW raised its stake in Munich-based MAN beyond 75 percent from a previous 73.76 percent on June 5, opening the door to a possible domination agreement that would earn Wolfsburg, Germany-based VW full strategic and financial control over MAN.
Volkswagen owns both MAN and Swedish peer Scania AB (SCV-A.SK). It aims to forge a European truck alliance to take on market leaders Daimler AG (DAI.XE) and Volvo AB (VOLV-B.SK) on a global scale.
“MAN and Scania can raise their profitability further through closer cooperation,” Volkswagen said, adding that all shareholders “will benefit from the associated growth in value.”
The announcement comes only one month after Chief Executive Martin Winterkorn announced a vigorous shake up in his management team, appointing the head of VW trucks unit Scania (SCVb.ST) to VW’s management board responsible for commercial vehicles.