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According to foreign media reports, Cummins, a US diesel engine manufacturer, has made a reference offer to Volkswagen Group to acquire Mann Energy Solutions (MAN Energy Solutions), a subsidiary of Volkswagen. Earlier in May, Volkswagen approached a number of companies to assess their willingness to buy Mann Energy Solutions.

Volkswagen's move is mainly based on its strategic plan to reduce its diversified product portfolio and streamline its group's business. Volkswagen, which now owns 12 sub-brands, including cars, trucks, buses, motorcycles and electric bicycles, has been trying to streamline its business over the past few years after it proposed a plan to sell its motorcycle brand Ducati and gearbox maker Renk, which was rejected by the company's labor board. As an early German company that entered the Chinese market, Volkswagen quickly accumulated a good reputation with its excellent performance and quality assurance. However, as Japanese and American car companies enter China, Volkswagen's market share is also carved up year by year. In order to help Volkswagen streamline its costs and make it more focused on passenger cars, Volkswagen has come up with the strategy of selling Mann Energy.

Mann Energy produces large diesel engines for ships and generators, as well as turbochargers for the oil and gas industry; it was formerly MAN Diesel&Turbo and originally belonged to the Volkswagen truck brand MAN, but some of MAN's assets were transferred to Volkswagen last year before Traton's truck division planned to go public. Mann Energy Solutions reported an operating profit of 133 million euros in 2018, and this time the sale price will be around 3 billion euros.

This time, in addition to Cummins, Mitsubishi heavy Industries and Wasilan are also considered potential bidders for Mann Energy Solutions. "We will not comment on relevant rumors or speculation in the market," a Cummins spokesman said. On July 19 local time, a Volkswagen spokesman reiterated that the company was evaluating all options for acquiring Mann Energy, but declined to comment further on the possible outcome. Volkswagen initially hoped to strike a deal with Cummins, but is now in talks with other bidders to get a higher price, and Mann's acquisition is expected to finalize a deal by the end of the year, according to a person familiar with the matter.

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