GM Sells Medium-Duty Truck Business to Navistar

GM Sells Medium-Duty Truck Business to Navistar

General Motors has reached an agreement with Navistar for the purchase of the automaker’s medium-duty truck business.

Under the plan, Navistar would manufacture GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range – the GMC TopKick and Chevrolet Kodiak.  Navistar also would sell a competitive line of Chevrolet and GMC vehicles and service parts through GM’s dealers in the United States and Canada.   

GM said the agreement is another step in its plan to focus on designing, manufacturing and selling cars and light trucks globally.  At the same time, Navistar said it would leverage its strengths in commercial trucks and engines, and advance its strategy to build scale and reduce costs.

Manufacturing of the vehicles would move from GM’s plant in Flint, Mich., to a Navistar facility to be named.  GM would retain ownership of its Flint plant and continue to build other products at the facility.

GM will continue its medium-duty truck relationship with Isuzu to market W-Series trucks through GM’s medium-duty dealer network.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.