Focused on expansion

MAN, the German manufacturer of commercial vehicles and mechanical engineering equipment, has expanded into the South American market with the acquisition of VW Truck & Bus from Volkswagen.

MAN

, the German manufacturer of commercial vehicles and mechanical engineering equipment, has expanded into the South American market with the acquisition of VW Truck & Bus from

Volkswagen

.

VW Truck & Bus has been producing trucks and buses since 1996 and employs around 5,000 staff at its Resende plant in Brazil.

The company is valued at €1,175m and primarily sells vehicles in Latin America and South Africa.

Both boards have agreed the sale, which is due to take place on 1 January 2009.

Håkan Samuelsson, chief executive of MAN, said: ‘Having concentrated on our core business units, MAN is now focusing on expansion in all business areas.

'The acquisition of VW Truck & Bus in Brazil marks another milestone in our international growth in trucks and buses.

'The new business area with its strong market position will provide MAN with access to the Latin American market.

‘At the same time, we can see considerable synergy potential for our production network.

'VW Truck & Bus has a strong regional sales network and a state-of-the-art truck and bus plant at its Resende site.

'We look forward to further strengthening the company’s position together with its president, Roberto Cortes, his management team and the employees.’