Navistar sought by German-Italian truck alliance: Report

ROME, Italy — Rumors concerning a buyout of Chicago-based Navistar International began smoldering again this weekend as the head of Italian truckmaker Iveco said the Fiat-owned company was looking for a partnership with a North American OEM.

According to Reuters, Iveco Chief Executive Paolo Monferino said he was in no hurry to ink a deal, but is considering a North American alliance for 2008.

Analysts suggest Navistar and Iveco would make
a good tandem because of their MD positions.

Transportation analysts quickly speculated that Navistar International would be a logical fit, because of both companies’ strong standing in their respective medium-duty markets.

Fiat’s Iveco, which trails far behind Volvo and Mercedes in the European heavy-duty segment, has been looking for an opening into North America — one of the only major world markets it doesn’t have a presence in.

A separate report speculates that German-based MAN could help the Italian manufacturer do just that.

Global Insight, a economic and financial analysis firm, suggests that MAN — which already has a joint strategic agreement with Navistar to collaborate on design, development, sourcing and manufacturing of diesel engines — is willing to team up with Iveco to buyout Navistar.

MAN has been musing about taking a bigger stake in Navistar ever since its failed takeover attempt of Swedish truckmaker Scania.

Meanwhile, Navistar, which is embroiled in a bitter legal dispute with Ford, announced the carmaker is working to develop its own diesel engines to replace the Power Stroke diesels Navistar supplies Ford for its F-Series Super-Duty pickups.

There were also reports last month that Navistar was looking at taking over GM’s class 5 and 6 lineup and move away from the Ford partnership.

— with files from Reuters & Global Insight