News of Volkswagen putting down $256 million for a 16.6 percent stake in Illinois-based Navistar broke on Monday, and while the purchase will allow the German automaker gain a desired foothold in the North American trucking business, it is ironically helping to save the company from an emissions struggle of its own.
In 2010, Navistar was faced with a setback as its efforts to create a heavy-duty diesel engine for its trucks were turned down by the EPA, costing the company billions in development costs.
So now the company’s saving grace is coming from Volkswagen, which itself is still trying to recover from the disastrous diesel emissions scandal that shows no signs of going away anytime soon.
It’s probably safe to say that Volkswagen learned its lesson the hard way, and when the company’s engine technology and trucks are integrated into Navistar’s operations, the emissions output will be legit. The timing of the announcement though carries with it a small amount of humor.