Volkswagen Truck & Bus is announcing its purchase of a 16.6 percent stake in Navistar, the fourth largest U.S. truck company. This not only marks Volkswagen’s entry into the U.S. commercial truck market, but also the first major glimpse of positive times for the German automaker after the dieselgate debacle with the U.S. EPA.

Volkswagen reportedly agreed to pay $15.76 a share, which is a premium over the $14,07 share price when the stocks closed on Friday. However, the extra price is buying Volkswagen two seats on Navistar’s board. The new comes from Market Watch, whose source is said to be someone close. The total purchase will cost VW roughly $256 million.

The entry into the U.S. commercial truck market is big news for Volkswagen Truck & Bus, which already runs its own successful commercial truck line, consisting of MAN and Scania. The VW subsidiary reportedly pulled in $38.5 billion in pre-tax revenue for 2015.

Navistar, on the other hand, has been floundering in economic troubles for the last several years. The company is said to be in $5 billion worth of debt and is expected to post another loss for 2016. The company even had its own version of VW’s dieselgate, having to pay $7.5 million to the U.S. Government.

Matthias Gründler, CFO of Volkswagen Truck & Bus, summed up the arrangement, saying: “Our collaboration, especially with regard to the powertrain, will considerably increase our synergy potential. Navistar will be able to profit from excellent powertrain technologies and we, in turn, will benefit from significantly higher volumes. Initiating this strategic alliance now will enable us to implement the requirements of Navistar into our joint component platforms from the get-go.”

Basically, this partnership’s short-term goals focus on VW powertrains and technology for Navistar products, while Navistar will provide more production volume for Volkswagen. A procurement joint venture will also be established that focuses on global sourcing of parts.

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Why It Matters

This is huge news for Volkswagen, Navistar, and the U.S. commercial truck industry. The partnership has the potential to help both brands do more together without increasing independent overhead. For Volkswagen, it gives access to the U.S. truck market and the opportunity to infiltrate the lucrative commercial truck sales experienced in the U.S. over the last several years. For Navistar, the oversight and assistance from VW should help steer the company into a better financial position.

This is also a sign that Volkswagen executives are regaining confidence after the yearlong struggle with the U.S. EPA over emission test-cheating diesel engines. Though VW is still not cleared of its cheating software, things seem to be turning around for the German automaker.