Scania AB is together with MAN SE studying the potential for collaboration on component supply and pre-development.

The companies are conducting feasibility studies regarding four strategic areas that are not brand-related. The studies cover the potential for:

-- Scania to adapt its manual gearbox for use in MAN trucks
-- Scania to use MAN's rear axle for heavy applications (36-40 tonnes) and its transfer cases in Scania trucks
-- Commodities without affecting brand identity
-- Scania and MAN to pursue joint research on hybrid components for heavy trucks and buses

Detailed evaluations to determine the potential for cost savings will be carried out in the course of further talks.

Leif Ostling, President and CEO of Scania, comments:

"After a preliminary analysis, we have concluded that with this kind of joint component supply there are potential synergies without jeopardising our strong brand identities and the individuality of our products. Both companies and all shareholders should profit from the collaboration."

A final collaboration agreement between Scania AB and MAN SE will be subject the approval of the Scania board of directors.