By Alexander Hübner, Jan Schwartz and Andreas Cremer
FRANKFURT (Reuters) - Volkswagen's (DE:VOWG_p) commercial vehicles division is close to announcing a partnership with U.S.-based rival Navistar International Corp (N:NAV), three sources familiar with the matter told Reuters on Monday.
Volkswagen's commercial vehicles division is trying to build itself into a global truck manufacturer having absorbed Germany's MAN (DE:MANG) and Sweden's Scania [SCVSA.UL].
Andreas Renschler, head of Volkswagen commercial vehicles, has wanted to get a strategic foothold in North America as a way to challenge Daimler (DE:DAIGn).
The deal will be announced as soon as Tuesday, the sources said.
Volkswagen has agreed to supply engines to Navistar in exchange for receiving a stake in the truckmaker, one of the sources, who declined to be named, told Reuters.
Volkswagen declined to comment, while Navistar was not immediately available for comment.
Navistar, which has a market value of around $1.15 billion, has been on the lookout for an engine partner ever since 2010 when it failed to get approval from the U.S. Environmental Protection Agency for its heavy-duty diesel truck engine.