MAN SE, the German truck-making arm of Volkswagen AG, plans to cut 1,400 jobs at its diesel-engine unit in an attempt to reverse a drop in earnings in that division

Volkswagen Commercial Vehicles debuted its electric e-Crafter concept van Sept. 21, with a range of about 124 miles and designed for urban deliveries.

Volkswagen AG’s heavy-truck unit will continue to expand its global presence after striking a deal to buy a stake in U.S. peer Navistar International Corp., as the European manufacturer readies for technological change including rollouts of all-electric vehicles.

BERLIN — Volkswagen division MAN will next year start selling heavy-duty commercial vehicles with new digital services to make its trucks more efficient, as VW looks to challenge rivals Daimler and Volvo AB.

Navistar International Corp. and Volkswagen AG’s truck unit announced a strategic alliance that includes a $256 million investment by the German vehicle maker in Navistar as well as planned joint development of powertrain, procurement and other collaborative efforts.

Volkswagen AG boosted its target for cost cuts at its trucks division to $1.12 billion (1 billion euros) as cooperation between its Scania and MAN units makes progress after years of tepid results.

Volkswagen AG’s truck unit MAN is nearly tripling the size of its digital division to add self-driving technology and make freight loading more efficient, seeking new sources of income as big rigs are increasingly linked via the Internet.

Volkswagen AG’s heavy-truck division is exploring options for growth that could include acquisitions and an initial public offering as it seeks to reap the benefits of more independence within its rapidly reorganizing parent company.

Volkswagen AG CEO Martin Winterkorn, who during nearly a decade at the helm catapulted VW to the top spot in global sales, stepped down after admitting the automaker cheated on U.S. emissions tests.