GM May Sell Truck Unit
By Michelle Krebs May 18, 2007General Motors reportedly is considering selling its medium-duty truck business to Navistar International Corp. GM apparently is looking to shed businesses its deems non-core and generate cash for its automotive operations. GM sells about 40,000 medium-duty trucks a year, sold as the Chevrolet Kodiak and GMC TopKick, built in Flint, Michigan, Navistar builds trucks that compete directly with GMâs models.
Chicago-based Navistar, long ago known as International Harvester, makes diesel engines for Fordâs Super Duty F-Series pickup trucks. In fact, Navistar and Ford are in a contract dispute that wound up in court. Navistar quit delivering engines to Ford, forcing Ford to shut down its truck assembly line. Ford apparently is developing its own diesel engine for its Super Duty trucks, which would end its relationship with Navistar. Meantime, Navistarâs purchase of GMâs medium-duty truck business would offset any potential loss.
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