Volkswagen to trim majority stake in Traton to 75% plus one share

Volkswagen AG is accelerating cost-cutting measures that now extend to its majority ownership of truck maker Traton SE. The German automaker, which currently holds an 87.5% stake in Traton—valued at €16.6 billion ($19.1 billion)—plans to reduce its holding to 75% plus one share to maintain control while expanding the free float. The move is part of a broader push to address weak sales in China, overhead costs that are roughly 20% higher than competitors, and a sprawling portfolio that includes stakes in over 2,000 businesses.

Traton, which owns brands such as Scania, MAN, and International (formerly Navistar), has seen its shares decline 1.1% in Frankfurt trading but remain up about 20% year-to-date. CEO Christian Levin emphasized that a larger free float could attract more investors, improve liquidity, and better reflect the company’s performance. Levin, who is not involved in Volkswagen’s stake-reduction process, highlighted the potential benefits of a broader shareholder base, including additional expertise in technology and artificial intelligence.

Volkswagen listed Traton in 2019, a move that was initially underwhelming due to its small size and pricing at the lower end of its targeted range. In March 2025, Volkswagen sold an additional 2.2% stake for approximately €360 million to further boost trading liquidity. The automaker’s cost-cutting drive comes as CEO Oliver Blume faces pressure over overhead costs and a proposal to cut up to 100,000 jobs, which has encountered resistance from labor representatives.

Traton recently posted stronger-than-expected first-half results, with an operating profit of €957 million and a 49% surge in truck orders, including nearly tripling in North America. The company raised the lower end of its full-year margin outlook in response. Volkswagen’s portfolio overhaul also includes the sale of a 51% stake in its Everllence ship-engine unit for about €7.4 billion, as part of a broader strategy to streamline operations and generate funds.