VW’s overhaul puts trucks stake in focus as sell-down looms

Volkswagen AG’s push to cut costs is spilling over to truckmaker Traton SE, where the German company is also preparing to reduce a majority stake currently worth €16.6 billion ($19.1 billion).

“We feel increased pressure to be incredibly careful with money, with costs, with investments,” Traton Chief Executive Christian Levin said in an interview. “That pressure has increased, I can say, from the main owner.”

Europe’s biggest carmaker, which holds 87.5% in the Scania and MAN manufacturer, is stepping up a broad plan to squeeze savings after falling behind the competition, led by cratering sales in China. Last month, VW outlined a focus on “its automotive core business,” and said the company would seek to shed some assets to slim down and boost funds.

That month, the owner of the Porsche and VW brands reiterated its goal to bring down the Traton holding to 75% plus one share to retain control. Levin said a larger free float would help attract more investors and boost the likelihood of Traton’s shares to better reflect the company’s performance.

Traton shares declined 1.1% as 10:53 a.m. in Frankfurt. The stock is up around a fifth this year.

The prospect of a wider shareholder base has particular resonance in Sweden, where Traton’s premium Scania truck brand is based. Entities belonging to the country’s Wallenberg billionaire family, including Investor AB, sold their remaining holdings to Volkswagen in 2008, after a prolonged ownership battle left Investor facing the prospect of being a minority shareholder under Volkswagen’s control.

Currently, SEB Funds — part of SEB, whose largest shareholder is Wallenberg-linked Investor AB — is Traton’s second-largest disclosed shareholder, with a stake of just over 3%.

A broader shareholder base could also bring additional expertise, Levin said. More active owners, including private equity firms, can contribute in areas such as technology development and artificial intelligence, he said, adding he’s not involved in Volkswagen’s process to reduce the holding.

“The broader, the better,” Levin said. “Geographically, with different competence backgrounds, with different time perspectives.”

VW listed Traton, which today also comprises North American truckmaker International, formerly Navistar, in 2019. While notable for showing that the sprawling VW group could pull off such a sale, the listing was underwhelming due to its small size and priced at the bottom of its targeted range.

In March 2025, VW sold another 2.2% for about €360 million, reducing its holding to today’s level to boost the ee float and trading liquidity.

Volkswagen’s sweeping overhaul comes as CEO Oliver Blume sees the group’s overhead costs roughly 20% higher than competitors’. An initial plan that weighed doubling job cuts to about 100,000 positions ran into fierce opposition from labor representatives. Talks on savings are set to resume in coming weeks.

The pressure is prompting VW to scrutinize its sprawling portfolio. The group, which has stakes in more than 2,000 businesses, agreed in June to sell 51% of its Everllence ship-engine unit in a transaction expected to generate about €7.4 billion. Blume has described the portfolio as an “important area for change.”

Traton’s recently posted a stronger-than-expected first half result with an operating profit of €957 million. Truck orders jumped 49% including a near-tripling in North America, prompting the company to raise the lower end of its full-year margin outlook.