Volkswagen AG is reducing its majority stake in truck manufacturer Traton SE. The company will lower its holding from the current 87.5% level. The target ownership is 75% plus one share. This stake is valued at approximately €16.6 billion, or roughly $19.1 billion.
The move supports a strategy to enhance efficiency and focus on core automotive operations. Volkswagen currently faces declining sales in China. The company also reports overhead costs that exceed those of its competitors.
Traton CEO Christian Levin cited increased pressure from Volkswagen to manage costs and investments. The divestment aims to free up capital for the parent company. Increasing the free float is expected to attract more investors and improve the liquidity of Traton shares.