Jim Cramer: VW Infusion Means Navistar Will Survive

Volkswagen  (VLKAY) is taking a 16.6% stake in Navistar International (NAV) - Get Report and that will ensure the truck-maker's survival, said TheStreet's Jim Cramer. Volkswagen Trucks & Bus offered $15.76 a share, making the deal worth $256 million. VW also has the right to appoint two directors to Navistar's board. The company has agreed to hold the shares for a minimum of three years. The strategic alliance includes framework agreement for strategic technology and supply collaboration and a procurement joint venture. The collaboration will give Volkswagen's truck brands - Scania, MAN and Volkswagen Caminhões e Ônibus - a bigger foothold in the U.S. The procurement joint venture is expected to help source parts for both companies, giving them greater scale and competitiveness.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.