VW integrates Man to reduce costs to build the world's largest commercial vehicle alliance

According to Bloomberg News, Volkswagen said that after obtaining absolute control over Mann Trucks, it intends to adopt an open plan of choice and build the world's largest alliance of commercial vehicle companies.

On November 9, 2011, Volkswagen stated that after integrating its Scania CV with Man, it would save at least 200 million euros (US$275 million) in costs each year. The decrease in expenditure comes from the consumption of procurement links on the one hand and R&D and production processes on the other. Volkswagen CEO Martin Wendun said: "This (merger) means that the global truck market will have a new top-level strongman."

Volkswagen has been focusing on the integration of two commercial vehicle companies to surpass Daimler and Volvo, the top two commercial vehicle manufacturers in the world. According to the EAMA (European Automobile Manufacturers' Association) data, Man and Scania accounted for 30% of the European heavy truck market in 2010, while Daimler and Volvo each occupied 21%. Once Man and Scania merge, they will leap to the position of the world's largest commercial vehicle company.

On November 3, 2011, Volkswagen’s application for the acquisition of Man Trucking Co., Ltd. obtained the Chinese government's permit approval for industry competition, and cleared the last obstacle to the successful inclusion of Man. According to the agreement, Volkswagen holds 55.9 percent of Mann’s voting shares and 51.71% of share capital. In Scania, since part of the equity is held by Man, the public’s voting rights for Scania will increase from 71.8% to 89.2%.

However, the current Manchester City CFO Frank Lutz said that there is currently no sign that Volkswagen will increase the number of shares he holds to more than 55.9%.