German Manager Magazine reports that Volkswagen is in the process of completely restructuring its heavy truck business. The magazine speculates that the underlying reason for the move could be to quickly raise cash for the Volkswagen Auto Group (VAG) via a new public stock offering of the (supposedly to-be) spun-off division, as the new firm would be listed separately on the stock market from the parent VAG.
The report cites un-named executives at the who say that the newly-created organization will move its headquarters from VAG’s current headquarters in Wolfsburg to Frankfurt. Adding credence to the report is the fact Volkswagen’s recent hiring of ex-Daimler manager Andreas Renschler, who has already requested for fifty employees to relocate to Frankfurt and run the truck division.
In addition, Volkswagen completely acquired the remaining portion of Swedish truck maker Scania in 2014. The German conglomerate owned the majority of Scania prior to the move, but set out to make it a wholly-owned subsidiary in 2014, completing the transaction late last year. The acquisition seems to further substantiate the spin-off rumor.
The Motrolix Take
It makes sense for VW to spin off the heavy truck division, especially in the content of hiring Renschler, relocating employees to Frankfurt, and competing the acquisition of Scania.