One of the very first posts on Daily Diesel Dose regarded the rumor that VW was looking to enter the U.S. heavy truck market. Most speculated they would do so through a partnership or outright buyout of an American held truck builder. Navistar International was the logical choice. After all, Freightliner and Mack are already owned by European industry titans and PACCAR seems to be rather large and financially stable. Well, a year has passed and nothing has happened…yet. Recently International has struggled greatly with their engines platforms regarding the EPA 2010 mandates. They just don’t measure up. This has resulted in heavy fines and threats of outright bans in certain states. Add a recent second quarter lost that sent Navistar stock down nearly 20% in the past week and the blood in the water syndrome begins. Low stock price, under valued assets, seems like the perfect time for a suitor to come knocking.
Enter Fiat, the new masters of Chrysler. Yesterday their CEO, Sergio Marchionne, revealed they are interested in joining the US heavy truck market. His answers regarding Navistar were cagey. When asked if he would be interested in aquiring International he replied…
We are interested in building our presence in the U.S. truck market.
Hmmmm, or when asked if talks were occuring between Navistar and Fiat….
None that I am willing to share.
Wow! Certainly seems like something is going on to me! Oh yeah, there was a recent shakeup of top management and “activist” investor Carl Icahn increased his stake in the company. Big changes to one of Americans oldest truck builder are coming folks. Let’s hope for the best.
Source: Fiat eyes U.S.