German car maker Volkswagen officials are discussing options to prepare the truck division for access to the capital markets, potentially paving the way for an initial public offering of shares or a bond sale by the unit, according to people familiar with the matter.
Deliberations at a meeting last week included changing the division’s legal structure to a private limited company under German rules or the European equivalent Societas Europaea, said the people, who asked not to be identified as the talks are confidential. A decision could be made in the next few weeks, but the discussions are complex and might drag on, according to the people.
“Currently we are focusing on implementing our strategy and on driving the transition from a ‘start-up company’ into a mature corporation," VW’s truck unit said in an emailed statement on Saturday, adding that “we keep all options open”.
Global automakers have embarked on sweeping organisational changes as the industry faces a seismic shift toward electric vehicles, autonomous cars and new digital services such as ride hailing.
Granting the VW truck operation more independence within the world’s largest auto maker would help to build confidence among investors that VW is considering deeper organisational changes to become more efficient in the wake of the diesel-emission scandal that erupted in September 2015.
The German company embarked on a push to become less centralised as part of a new strategy, but an asset review announced almost two years ago to identify non-core operations has not led to a tangible results so far. The push to make the 630,000-employee, 120-factory group more focused on its main automotive operations appeared mired in internal politics last year when the sale of the Ducati motorcycle brand collapsed.
German rival Daimler last year firmed up plans to give individual units more independence to make them agile. The move sparked speculation that the manufacturer could spin off its truck division, which is the world’s largest maker of commercial vehicles. Daimler officials have denied that a full sale of a division is in the works, but left the door open for a possible initial public offering of a minority stake.
VW’s truck division has struggled to generate cost synergies after the car maker bought Munich-based MAN and Sweden’s Scania. After VW hired Andreas Renschler from Daimler, he pushed deeper cooperation within the division, which also sells VW-brand heavy trucks in Brazil. The company aims to create a rival to global commercial vehicle leaders Daimler and Volvo.
Scania and MAN combined generate about €25 billion ($29bn) in annual revenue and produce vehicles ranging from the Swedish brand's long-haul R-Series featuring V8 engines to MAN's mid-duty trucks and TGE vans.
Renschler has set his sights on further expansion. He spearheaded the acquisition of a 17 per cent stake in Navistar International Corporation to gain a foothold in the United States. He's also considering strengthening ties with China's Sinotruk Hong Kong and is in cooperation talks with Gaz in Russia.
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
Company profile
Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
ENGLAND SQUAD
Goalkeepers Pickford (Everton), Pope (Burnley), Henderson (Manchester United)
Defenders Alexander-Arnold (Liverpool), Chilwell (Chelsea), Coady (Wolves), Dier (Tottenham), Gomez (Liverpool), James (Chelsea), Keane (Everton), Maguire (Manchester United), Maitland-Niles (Arsenal), Mings (Aston Villa), Saka (Arsenal), Trippier (Atletico Madrid), Walker (Manchester City)
Midfielders: Foden (Manchester City), Henderson (Liverpool), Grealish (Aston Villa), Mount (Chelsea), Rice (West Ham), Ward-Prowse (Southampton), Winks (Tottenham)
Forwards: Abraham (Chelsea), Calvert-Lewin (Everton), Kane (Tottenham), Rashford (Manchester United), Sancho (Borussia Dortmund), Sterling (Manchester City)
Opening day UAE Premiership fixtures, Friday, September 22:
- Dubai Sports City Eagles v Dubai Exiles
- Dubai Hurricanes v Abu Dhabi Saracens
- Jebel Ali Dragons v Abu Dhabi Harlequins
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
