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Volkswagen AG’s heavy-truck business assigned development of components for its largest vehicles to Swedish brand Scania, while MAN will be in charge of mid-sized and smaller models to reduce costs by eliminating duplicated work.

Scania Inc. said it will partner with one of Norway’s largest trucking companies to test trucks powered by electrical energy converted from hydrogen gas in fuel cells in the vehicle.

Scania said it will begin testing electric trucks powered by overhead lines in real-world conditions starting next February.

Volkswagen AG created a holding company for its MAN and Scania heavy-truck units in the latest effort to kick-start cost savings and cooperation efforts after buying the former rivals.

European truck and engine maker Scania has entered into a partnership with U.S.-based specialty truck maker Oshkosh Corp., in which Scania will deliver low-emission engines for airport product vehicles produced by Oshkosh.

Volkswagen AG has offered 6.7 billion euros ($9.2 billion) to Scania AB shareholders to buy the remaining 37.4% of the Swedish truck maker, part of a plan to become a global heavy-truck manufacturer, Bloomberg News reported.