Scania Ends Axle Pact With MAN

Posted on April 5, 2006

Scania said it has decided to end its axle manufacturing and design agreement with MAN. The two companies continue to discuss a similar pact to design and manufacture transmissions. In April 2003, Scania and MAN entered a into an agreement to jointly develop and build gearboxes and axles. The parties have been evaluating development and production of axles by MAN in Germany and gearboxes produced by Scania in Sweden. For transmissions, Scania said discussions have “entered the final stage.”

”After several years of technical evaluations, our conclusion is that the financial benefits of the intended co-operation within axles are not sufficient to justify the technical complexity and related extra costs that will be added to our products", says Leif Ostling, president and CEO.