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VW makes $9.2B offer for rest of truckmaker Scania

Volkswagen owns or has controlling interests in three commercial truck operations: besides its own, VW began buying shares in Sweden's Scania in 2000 and now controls 89.2 percent of its shares and 62.6 percent of its capital, then bought into Germany's Man in 2006 - in order to prevent Man from trying to take over Scania - and now owns 75 percent of it. The car company has managed to work out 200 million euros in savings, but believes it can unlock a total of 650 million euros in savings if it takes outright control of Scania and can spread more common parts among the three divisions.
It has proposed a 6.7-billion-euro ($9.2 billion) buyout, but according to a Bloomberg report, Scania's minority investors don't appear inclined to the deal. Although effectively controlled by VW, Scania is an independently-listed Swedish company, and a profitable one at that: in the January-September 2013 period its operating profit was 9.4 percent compared to Man's 0.4 percent. Some of the other shareholders believe that Scania is better off on its own and will not approve the deal, some have asked an auditor to look into the potential conflict of interest between VW and Man, while some are willing to examine the deal and "make an evaluation based on what a long-term owner finds is good," which might not be just "the stock market price plus a few percent." The buyout will only be official assuming VW can reach the 90-percent share threshold that Swedish law mandates for a squeeze-out.
Many of the arguments against boil down to investors believing that Scania's Swedishness and unique offerings are what keep it profitable, and ownership by the German car company will kill that. (Have we heard that somewhere before?) If Volkswagen can buy that additional 0.8-percent share in Scania, perhaps its buyout wrangling with Man will give it an idea of what it's in for: "dozens" of minority investors in the German truckmaker have filed cases against VW, seeking higher prices for their shares. It is likely only to delay the inevitable, though. If VW is really going to compete with Daimler and Volvo in the truck market, it has to get the size, clout and savings to do so.

Canada expands cooperation with EPA over VW scandal

It doesn't take much more than a stiff breeze to send some US pollution northward across the 49th parallel. Perhaps that's why the Canadian government says it is standing strong with the US in its continuing investigation of Volkswagen and the allegations and self-reporting that the automaker installed software to try to game emissions regulations. In fact, the Canadian government is going to do its own slate of on-road testing to see how VW diesel engines perform in real-world conditions. Last year, about 1.8 million new light-duty vehicles were sold in Canada, which is about equal to how many were sold in Maryland. That compares to about 17 million new-vehicle sales for the US. But every bit counts when it comes to an increase in potentially harmful emissions, and the Canadian government says it wants to make sure VW's diesel engines are being properly monitored, whether they're sold in Detroit, MI, or across the river in Windsor, Ontario. And that means following up – together – on allegations that Europe's biggest automaker is using so-called "defeat devices" in what it has long called its "clean diesel" engines. The automotive industry continues to be roiled by the VW scandal, in which the automaker said that as many as 11 million of its vehicles may contain software programmed to manipulate emissions-testing procedures. Volkswagen has set aside $7.3 billion to deal with the scandal, while VW CEO Martin Winterkorn was forced to step down after the issue became public. Take a look at Environment Canada's press release below. Statement - Government of Canada expands its on-going collaborative work with the U.S. EPA to assess other diesel vehicles for defeat devices OTTAWA, Sept. 26, 2015 /CNW/ - On September 22, 2015, the Government of Canada opened an investigation into Volkswagen's alleged use of defeat devices to circumvent emissions regulations. Environment Canada issued the following update on the issue: "The Government of Canada has a long history of collaborating closely with the U.S. Environmental Protection Agency (EPA) to align emission standards, as well as to provide oversight and verify compliance with applicable emission regulations "Today, the Government of Canada is announcing that it has expanded its ongoing collaborative work with the U.S. EPA to assess other diesel vehicles for defeat devices and compliance issues. "Vehicles will be subject to a variety of tests including on-road testing using portable emission measurement systems.

U.S. opens probe into whether VW vehicles infringe Jaguar Land Rover patents

WASHINGTON — The U.S. International Trade Commission (ITC) said on Monday it is opening in investigation into whether Volkswagen AG infringed on patents held by Jaguar Land Rover for a system used for off-road driving. In November, Jaguar Land Rover, a unit of Tata Motors, filed a complaint with the ITC seeking to prevent the import of some VW Porsche, Lamborghini and Audi models with "certain vehicle control systems" that allegedly infringe on it patents held for its Terrain Response system. The models include the Lamborghini Urus, Porsche Cayenne and AudiÂ’s Q8, Q7, Q5, A6 Allroad, and E-Tron vehicles and the VW Tiguan. The ITC said it has made no decision on the merits. VW said in a statement it was examining the action and determining its next steps. "We will of course cooperate with investigating authorities. While we cannot comment on any details of the proceedings, we strongly believe that the claims have no merit and will robustly defend our position," VW said. Many automakers offer a suite of off-road powertrain controls, but JLR claims Volkswagen's tech is more than just similar.  Jaguar Land Rover (JLR) said the vehicles "have used JLRÂ’s patented inventions without payment or permission" notably a patent for an "improved system for driving a vehicle on different driving surfaces, in particular off-road." JLR says its Terrain Response technology uses the patented technology to maximize performance on off-road driving surfaces, including grass, snow, mud, sand and rocks.