Volkswagen has continued to increase its stake in Navistar following its initial buy-in in 2016. The company purchased approximately $10 million worth of shares in July through five transactions, according to documents filed with the SEC.
In 2016, Volkswagen acquired a stake in the company with a $250 million investment. The new stock purchases up Volkswagen’s share of Navistar to about 17%.
Navistar’s latest earnings report, released on June 7, noted a 4.6% decline in revenue compared to the same quarter last year. It had revenues of $2.10 billion during the quarter, compared to the consensus estimate of $2.08 billion.
A number of investment firms have downgraded Navistar stock, including Zacks Investment Research which moved from a hold to a sell rating.
Did you know?
The first hours-of-service rules for truck drivers were introduced in 1938 by the Interstate Commerce Commission. The rules limited drivers to 12 hours of work within a 15-hour period. Work was defined as “loading, unloading, driving, handling freight, preparing reports, preparing vehicles for service, or performing any other duty pertaining to the transportation of passengers or property.”
“Our N9/10 engine family was updated in 2014 and since then has served as a competitive niche offering for specific medium-duty vehicles. As we approach future regulatory requirements, the low volume nature of the platform could not justify further product development investments on it.”
- Persio Lisboa, Navistar COO, on ending the company’s engine production in Melrose, IL
In other news:
Panama Canal expansion should still benefit trucking
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Employment, wages rise in July
The Labor Department said that nonfarm payrolls gained 209,000 jobs in July and average hourly wages increased 9 cents for the largest increase in five months. (Reuters)
Navistar to discontinue medium-duty engine platform
Navistar said it will end production of its 9- and 10-liter medium-duty engines and shut down engine production at its Melrose, IL, plant early next year.(CCJ)
Examining Walmart’s new on-time policy
Shippers will need to adjust to Walmart’s new on-time delivery policy, but it may only be the beginning as more retailers could turn to the strategy. (Inbound Logistics)
The announcement that Navistar was ending production of its 9- and 10-liter engines means that Cummins engines will now become the standard engine for International medium-duty trucks. However, closer ties with Volkswagen could provide another choice at some point in the future.
Hammer down everyone!