The proposed merger between Scania and MAN has been put on hold. Both companies are under the control of automotive industry giant Volkswagen and they have been investigating a possible merger for some time. However, statements issued by both companies suggest the time for any proposed merger may be well in the future.
“It is completely logical to reinforce our co-operation with Scania,” said MAN CEO Pachta Reyhofen, in the company’s corporate magazine. “But it is out of the question to do anything that would endanger our brand.”
Reports in the German business newspaper, Handelsblatt, suggests Volkswagen is reconsidering its entire strategy in the truck business. Two issues may be provoking this latest rethink. One is the continuing investigation into corruption around some of the leadership at MAN, this has already led to the resignation of former CEO Hakan Samuelsson. Secondly, the European Union is investigating the competitive impact of the proposed merger.