VW Buying Stake in Navistar Trucking Business Serves Up Some Irony

By Stephen Fuchs on Email @StephenWFuchs

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.

Show your love & become a Patron. Get exclusive content, rewards and more!

Sources: Reuters

Photo: John Ott [Flickr]

Stephen Fuchs
Stephen founded German Pulse and LGBT Germany out of a passion to introduce Americans to a Germany that goes beyond beer and polka (although with enough beer he has been known to polka it up a bit). He's a coffee addict, lover of wine and good times, a hit in the kitchen and editor of TV commercials. You can follow him on Twitter (@StephenWFuchs) to find out a lot more.
Stephen Fuchs on EmailStephen Fuchs on LinkedinStephen Fuchs on Twitter