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A closer look at the VW-Navistar deal

Oliver Dixon considers the deeper implications of VW’s decision to invest in Navistar

Volkswagen’s decision to take a 16.6% stake in Navistar answers some questions but in doing so raises many more. Volkswagen is spending US$256m, will get two seats on the Board of Management and will supply engines to Navistar. In addition, the two organisations will establish a procurement joint venture which will realise – according to Navistar – savings of at least US$500m per year over the past five years.

Those are the headlines and the questions they answer are twofold.

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