Chief Executive Officer of Volkswagen’s Truck & Bus division, Andreas Renschler, says he wants to take his division to the next level with the German manufacturer considering a stock listing that could catapult the $37 billion unit into the blue chip ranks of Europe’s largest economy.
According to Renschler, who oversees the Scania and MAN truck brands, an initial public offering (IPO) is just one of the options. “Another is that we could issue our own bonds. It’s ultimately a decision for our shareholders,” he said in an interview with Bloomberg at the company’s headquarters in Wolfsburg.
Changing the unit’s legal status into a stock corporation will help us avoid “wasting time once we have a decision by our shareholders,” Renschler said.
According to Bloomberg VW’s heavy trucks and buses division struggled for years to generate economies of scale between Scania, MAN and a Brazil-based operation that makes VW-branded commercial vehicles. Renschler seeks to address the problem by deepening internal cooperation and accelerating efforts to expand the unit’s global presence.
The CEO also plans to boost the company’s revenue by selling engines to new customers like agriculture-equipment makers. “The off-highway business is very important for us as it enables us to sell commercial vehicle engines with very few changes to our partners,” Renschler said.