Friday, July 18, 2008

VW takes over Scania

Europe's largest car manufacturer, Volkswagen, has announced that it has received the green light to go ahead with the takeover of Swedish bus and lorry manufacturer Scania, which will add the company to VW's extensive collection of brands, which includes Bentley, Skoda and Audi.

VW has had sole control in Scania since March 2008, however it had to get approval from the EU for the move and also had to deal with anti-trust cases in several European countries. Final voting stakes should be acquired later in the month in a move that is estimated to cost VW 2.8 billion euro, and which could eventually lead to a merger between VW and MAN.

Some might think it a strange move for VW to acquire a company that makes large vehicles when oil prices are constantly climbing and sales in larger vehicles are dropping, but I think we can be sure that truckers will only stop trucking when the last drop of fuel disappears into the atmosphere.


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