By on June 7, 2013

MAN is now officially part of the Volkswagen empire. MAN stockholders approved a profit and loss transfer agreement that “ends MAN’s autonomy,” as Automobilwoche [sub]  reports.

A bit kinkily, that agreement is called a “domination” agreement in Germany. It defines a corporate power exchange.

Getting the necessary votes was easy. Volkswagen owns more than 75 percent of MAN. In the end, 98 percent of the shares voted “Ja.”  Apart from trucks, MAN builds big diesel engines for ships  and power plants. The company may not look like much to the untrained eye, but “after Volkswagen passenger cars and Audi, MAN is the third largest brand at Volkswagen, “ says Automobilwoche.

Until now, Volkswagen did not count the approximately 150,000 MAN/Scania trucks sold worldwide as theirs. This is most likely to change, and could bring Volkswagen a step closer to a fulfillment of its world’s largest automaker dream.  The race is tight this year, and could become a bit tighter.  150,000 units more could bring Volkswagen perilously close to GM.

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37 Comments on “Truck Maker MAN Now Finally, Officially A Volkswagen Submissive. GM Won’t Like It...”


  • avatar
    stephenjmcn

    Soooo……. basically nothing to do with GM at all?

    • 0 avatar
      mike978

      Exactly. BS could have easily said Toyota wouldn`t like it since it gets VW closer to being #1 (for what that is worth). But then familiarity does have consequences.

      • 0 avatar
        cacon

        I think the reference to GM is about their positions as global automakers:

        “The race is tight this year, and could become a bit tighter. 150,000 units more could bring Volkswagen perilously close to GM.”

        • 0 avatar

          Thank you for the assist.

          Regretfully, our stories don’t come with an illustrated how to use …

          On the other hand, that makes them more versatile: People can read into them whatever they like.

          • 0 avatar
            Lorenzo

            Isn’t that kind of dangerous? Suppose somebody came up with a porn movie script “based on a TTAC post by Bertel Schmitt”? I imagine that could cause a problem.

          • 0 avatar
            RobertRyan

            Bertel,
            I think the Stats for the combined MAN/Scania is a bit off as not too long ago, Scania was looking at selling 150,000 unis alone.

          • 0 avatar
            RobertRyan

            @Bertel,
            Truck and Bus Production has been hit by the European turn down.
            In 2007 MAN was making a combined total of 127,000 trucks and Buses.It now makes 83,000. Scania has similar figures but has been more profitable.
            http://www.mantruckandbus.com/man/media/content_medien/doc_1/Corporate_presentation_2012_e.pdf

            Figures for Scania
            http://www.mantruckandbus.com/man/media/content_medien/doc_1/Corporate_presentation_2012_e.pdf

            Roughly 163,000 vehicles combined . Down from a combined total of roughly 240,000 vehicles in 2007. Bulk of both Trucks production falls into the US Class 7 and 8 range.
            I do not know where the South American VW Constellation Truck figures come into this as MAN bought the business from VW.

  • avatar

    I think Akerson is way more interested in catching up to VW’s profits than he is in VW catching up to GM’s annual units sold. The Detroit know-it-alls don’t seem to get it, but he has his priorities in the right order.

  • avatar

    Bill Clinton in his younger years.

  • avatar
    cacon

    Nice picture

  • avatar
    reclusive_in_nature

    All accusations of misogyny aside, that pic is HOT.

  • avatar
    EquipmentJunkie

    I would say that Daimler Benz and Fiat like it less than GM.

    Are there any US (read Navistar) implications to this VW/MAN “domination” agreement?

    • 0 avatar
      Type57SC

      I agree – unless you’re a heavy vehicle mfr, why care about this?

    • 0 avatar
      Onus

      I know a few years back vw was considering taking a stake in Navistar. Not sure what came of that. I doubt vw will stop supplying them engine designs. But, in the long run they should probably make there own design unless the already own the design rights for the man engines.

      They already use MAN engines in the maxxforce guise on the large end. The small end is filled with the v8 diesel ford used to buy, and variants of the long lived dt 466.

      I did some reasearch and it looks like navistar builds engines for man in south america.

    • 0 avatar
      EquipmentJunkie

      My sense is that a lot is going to happen in this heavy market in the coming days, months, & years.
      – Fiat (Iveco, powertrain, & CNH) is in the process of reorganizing/renaming along with a NYSE listing and the auto side will always need cash
      – Navistar has had some major issues with emissions compliance and had to fall back & punt
      – Caterpillar has jumped into the on-highway truck business with Navistar
      – Deere has announced lofty sales goals which can’t be done without a significant European presence which means mergers & acquisitions
      This official MAN + VW announcement may be the first shoe to drop.

    • 0 avatar
      RobertRyan

      Yes VW does not have a heavy Truck presence in NA. MAN has designed a engine for Navistar(the non-cummins unit they are still using). Scania/MAN do not a Conventional Cab Truck(Like virtually everyone else outside NA)

  • avatar
    TR4

    New Company name: VAG-MAN

  • avatar
    CoreyDL

    So you’re telling me the VAG can dominate a MAN?

  • avatar
    CoreyDL

    I had always thought Scania was the truck maker portion of SAAB. Seems like I recall seeing a couple of things labeled SAAB/SCANIA.

  • avatar
    vaujot

    As a German lawyer, I don’t find the term “Beherrschungs- und Ergebnisabführungsvertrag” particularly kinky.

  • avatar

    Damiler still makes more trucks though I think

  • avatar
    SixDucks

    John Rosevear has it right. Besides, GM doesn’t compete in the heavy truck and large industrial diesel markets anymore (and at one time, boy did they), so the point is moot anyway.

    Agreed that the world heavy truck market is heading for some major consolidations. At one time, VW was trying to force a merger between MAN and Scania. Does VW still own a share of Scania?

    • 0 avatar
      RobertRyan

      Daimler(Mercedes-Benz) has been surpassed by Volvo as the worlds biggest Truck Maker. VW has controlling shares in Scania and MAN, but in reality they are fierce competitors both are not part of the VW supply chain. Scania has competitors trucks being tested all the time and that includes MAN. There is a fair bit of bad blood between the two manufacturers. That being said they are both striving to improve the bottom line and are well run efficient businesses despite the difficult economic climate they are working in.
      I see Navistar at some stage undergoing a shotgun wedding with either Fiat Industrial or Scania/MAN

    • 0 avatar
      porschespeed

      SixDucks, Do tell when GM dumped Electromotive? Yeah…

      I’m about 9 million miles from liking GM, but the fact remains they are relevant,

      • 0 avatar
        SixDucks

        Electromotive? Sure, not a core business, and GM needed the cash. Going through somewhat of a revival under Caterpillar, more to come. Funny you brought it up, I worked on a 20 cylinder 645 today.

        • 0 avatar
          RobertRyan

          MAN makes these Railway Engines as well as General Industrial engines.
          http://www.man.eu/en/press-and-media/specials/overview/Efficient-railway-engines-15755.html

  • avatar
    AJ

    I just like the picture. ;)

  • avatar

    I like it too, more than story itself. Looks like Oval Office circa 1990s, good old times.


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