When Volkswagen replaced its head executive Matthias Müller with Herbert Diess, it said that one of the most important jobs for the new leader is to get the Truck & Bus division ready for the challenges of the modern era.
This week, the group presented the first step to be taken towards achieving that goal, namely the creation of a new entity that would encompass the businesses of MAN, Scania, Volkswagen Caminhões e Ônibus and RIO.
To be called Traton, the new organization does not mean the brands above would lose their identities. MAN would still be MAN, for instance, but its fate would now be determined by the new group. Traton would have a business model similar to that of a start-up, said VW without providing any additional details.
Traton will officially come into being by the onset of the third quarter of the year. Speculation is the company would go for an initial public offering in the coming years.
As per Volkswagen’s statement, the name for the new group comprises several words that describe the future VW has envisioned for the truck division: determination, integrity, respect, customer focus, and team spirit. For us, it just sounds weird.
“The new name Traton is a major milestone on our road to becoming Global Champion of the transportation industry,” Andreas Renschler, Volkswagen Truck & Bus CEO said in a bombastic statement.
“The new name will also foster our visibility as the leading Group for innovative transportation solutions. It will increase our attractiveness for new talents as well as for capital markets.”
The decision to create a stand-alone business was made following assessments that showed the transportation sector will undergo major changes in the years ahead. The biggest challenge would be complying with the higher emission standards that are to come into effect later this year in Europe, said the Germans.
To be called Traton, the new organization does not mean the brands above would lose their identities. MAN would still be MAN, for instance, but its fate would now be determined by the new group. Traton would have a business model similar to that of a start-up, said VW without providing any additional details.
Traton will officially come into being by the onset of the third quarter of the year. Speculation is the company would go for an initial public offering in the coming years.
As per Volkswagen’s statement, the name for the new group comprises several words that describe the future VW has envisioned for the truck division: determination, integrity, respect, customer focus, and team spirit. For us, it just sounds weird.
“The new name Traton is a major milestone on our road to becoming Global Champion of the transportation industry,” Andreas Renschler, Volkswagen Truck & Bus CEO said in a bombastic statement.
“The new name will also foster our visibility as the leading Group for innovative transportation solutions. It will increase our attractiveness for new talents as well as for capital markets.”
The decision to create a stand-alone business was made following assessments that showed the transportation sector will undergo major changes in the years ahead. The biggest challenge would be complying with the higher emission standards that are to come into effect later this year in Europe, said the Germans.