Traton secures €500 million EIB loan for research and development
The loan aims to drive the transformation of Europe’s heavy-duty commercial vehicle industry, as Traton is one of the key players in this sector. The financing supports the objectives of the European ‘Green Deal’, which include making transport cleaner and helping manufacturers comply with stringent CO₂ reduction regulations.
Through the Traton Modular System (TMS), the commercial vehicle group from the Volkswagen Group is developing a global, cross-brand modular platform to streamline vehicle development and production. At its core, this involves creating components that can be used across Scania, MAN, International (formerly Navistar), and Volkswagen Truck & Bus. Traton aims to achieve an adjusted operating margin of 9 to 11 per cent by 2029 through technology exchange among its brands based on the TMS source.
The TMS platform is designed to accommodate vehicles of all drive types, including components specific to electromobility. For instance, Traton highlights traction batteries, e-axles, and E/E architecture (electric/electronic) as key elements of the TMS—three core components of battery-electric trucks and buses. Additionally, the TMS platform is intended to advance the circular economy by ensuring that standardised parts increase the reuse rate of used components.
Nicola Beer, Vice-President of the European Investment Bank, commented on the loan agreement with Traton: “Investing in sustainable mobility and cutting-edge digitalization is vital for Europe’s long-term competitiveness. By financing industry leaders like TRATON, the EIB ensures that European innovation translates into real-world impact—creating high-quality jobs, reinforcing resilient supply chains, and driving the continent’s leadership in the green transition.”
To advance the development of the TMS, Traton brought together 9,000 employees from the R&D departments of Scania, MAN, International, and Volkswagen Truck & Bus into a group-wide research and development unit named ‘Group R&D’ this summer. However, 3,000 employees remain in the R&D departments of the individual brands to complement TMS components with brand-specific solutions. This ensures that, for example, MAN and Scania trucks continue to differ externally, even as they become increasingly similar under the bonnet.
With the new EIB loan, Traton aims to accelerate the development of the TMS. Michael Jackstein, CFO of Traton, stated: “The partnership with the European Investment Bank is a major milestone in TRATON GROUP’s financial strategy and underlines our strategic direction and innovative strength. By further diversifying our financing access, we are ensuring the financial stability and flexibility needed to drive innovation and support our customers throughout the industry’s transition to a more electrified and sustainable future.”
This article was first published by Florian Treiß for electrive’s German edition.
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