Volkswagen’s $2.9B offer to buy truckmaker Navistar is in jeopardy due to the coronavirus as car makers need to address liquidity issues.
“We have not pulled the deal, we still believe it is a good idea, but we will watch like hawks the liquidity situation and the prioritisation of all activities we are contemplating.”
Herbert Diess, Volkswagen Group CEO
Volkswagen management has said that it is still interested in being the U.S. truckmaker, but in the face of an impending recession, automakers have been forced to scale back production and conserve cash. Volkswagen’s CFO said that the company’s current liquidity outlook does not take into account the acquisition.