FCA To Merge With PSA

Just because he says he wants to do it, does not mean he can at this time or should. The US heavy duty truck market is very cyclical meaning that it generally has 2-5 good years with lots of truck orders followed by 1-3 bad years. We are just coming our of a 5 year boom meaning Navistar's shares are high. This means their value is high which means it will cost more for VW to purchase them.

If VW were smart, they would wait at least a few years for the Navistar value to drop and then acquire more assets into Navistar. It would probably take a few more cycles for it to be a full acquisition. This is what VW did on the last bust in the heavy duty market when they bought around 16% of the shares of Navistar several years ago. This is why we hear that VW has no current plans to acquire Navistar and will likely wait a few years when their value goes down.

It would be foolish of VW or any investor to purchase when values are high and are historically at their peak when they can wait just a few years for the value to drop.

That is what I am saying and seeing. They will wait for more buoyant Global conditions before they make a move. Traton wants to overtake Volvo and eventually MB in the Global Truck market. Problem is MB and Volvo already own other European and Asian manufacturers