Volkswagen AG canceled plans to sell a share of its Traton SE division due to weak market conditions, dealing a setback to the automaker's plan to generate fresh funds for the heavy-truck unit's expansion outside Europe.
"We regret that we have to refrain from a stock listing of Traton SE," Chief Financial Officer Frank Witter said Wednesday. "The management board continues to aim for a stock listing in a better market environment."
VW decided to delay after a difficult start to the new year for the global automotive industry. In Europe, Traton's biggest market, the economy is forecast to grow this year at the slowest rate since 2013. Activity has declined in part due to uncertainty surrounding the U.K.'s departure from the European Union and U.S. President Donald Trump's threats to increase tariffs on European-made cars.