Cummins has made an offer to buy MAN Energy Solutions from Volkswagen, according to press reports out of Europe. Both VW and Cummins officials have declined to comment.
The future of MAN Energy Solutions was expanded upon during Wärtsilä’s recent financial reporting on its first six months of 2019.
During the earnings call, Wärtsilä President and CEO Jaakko Eskola was asked about reports that Volkswagen has approached several companies about buying its MAN Energy Solutions. Like many other conglomerates, Volkswagen, which has 12 brands ranging from large engines to electric bicycles, is trying to shrink its portfolio.
Volkswagen has not yet started a formal sales process or appointed an adviser for the sale of the company but has contacted others in the engine manufacturing business such as Cummins, Wartsila and private equity owned INNIO, according to media reports.
MAN Energy Solutions designs two- and four-stroke engines that are manufactured by both itself and licensees as well as gas and steam turbines, compressors and chemical reactors. Eskola said Wartsila would only be interested in MAN’s two-stroke portfolio.
“Publicly, as you know, Volkswagen has said that they would like to sell it as one package, but that’s whatever we can read from the public sources,” Eskola said.
MAN Energy Solutions, formerly known as MAN Diesel & Turbo, also makes turbochargers used in the oil & gas industry and in 2018 reported operating earnings of €133 million on sales of €3.1 billion.