Navistar Buying GM Medium Duty Truck?

[ChiefJohn]

Quote:

Navistar also announced that it is in discussions with General Motors Corp. about a plan for Navistar to acquire GM's medium-duty truck business, including the rights to manufacture GMC and Chevrolet brand trucks.

Complete article here.

[Jestme13]

Wow, their just carving big chunks off of GM, first Allison/Detroit now Chevy. Whats next, Chinese Cadilacs

[TXiceman]

I guess we will wind up with a Power Max or a Dura Stroke in the trucks.....or a Dura Star or a NavMax.

Time will tell.

Ken

[ChiefJohn]

Quote:

International acquires GM Medium-Duty business By Justin Carretta, online news editor and Jim Mele, editor-in-chief Dec 20, 2007 1:14 PM After months of rumors, International Truck and Engine Corp. has officially announced it is buying General Motors' medium-duty truck business. Under a non-binding memorandum of understanding signed today, International will take over complete responsibility for manufacturing, engineering, sales, distribution, servicing, and marketing of GM's TopKick, Kodiak and T-Series trucks. The companies declined to comment on any of the financial terms. The GM trucks will continue to be sold by the GMC and Chevrolet dealership networks, according to both parties. The related service parts business is also included in the sale. The deal does not impact GM's current relationship with Isuzu for the Class 2 through 5 W-Series cabover trucks. Expected to close sometime later this year, the transfer "should be seamless for both our customers and dealers,"� according to John Gaydash, director of marketing, GM fleet & commercial operations. Production of the C-4500 to C-8500 and T-Series trucks will move from GM's Flint plant to a International facility yet to be named, with GM retaining ownership of the Flint facility. "We have plans to transition the business to an International plant, but we are not ready to announce the plant,"� said Dave Tarrant, manager of medium-duty commercial truck strategy for International. He added that the company does have locations in mind for the move, and expect to make the transition before the end of the 2008 calendar year. GM also builds full-sized pickups at the Flint plant and will move other product production to the facility after the transition, Gaydash said during a telephone press conference. He added that GM's medium-duty engineers and marketing teams would be redeployed to new assignments within the company, most likely in light-duty. Currently Isuzu also supplies GM with its Duramax 6.6L diesel engine, which is used in both its pickup and medium truck products. That relationship will continue after the sale is finalized, according to GM. However, International is a major manufacturer of competing diesel engines, and industry observers expect the medium-duty GM brands to eventually move over to International powerplants, especially as new technology becomes required to meet future emissions requirements. "After the transition, the trucks will be built exactly as they're build now, but we expect to refine them over time,"� said Tarrant. "The decisions are ours, because the bottom line is ours,"� he said, adding that International would continue to solicit input from General Motors. According to data from Ward's Auto, General Motors sold 23,953 Class 4-7 vehicles in the U.S. in first 11 months of 2007, while International sold 38,004. Overall U.S. retail sales for Class 4-7 for that period totaled 275,882 units.

[xc-mark]

Its a sad day in my eyes GM is selling off its branches to raise money to say a float..... I really wish every one would wake up and see China is going to run the world very soon !

[DriVer]

Quote:

Originally posted by xc-mark: Its a sad day in my eyes GM is selling off its branches to raise money to say a float.....

The business of building the trucks remains on US soil and the vehicles are going to be built by the UAW. I see only a change in badging with little impact except during the transitional period. I think this is good news rather than selling off the division to a foreign interest. I don't see Canada as a foreign interest BTW since both US and Canadian vehicle manufacturing are closely intertwined.

IMO, International Truck and Engine, a division of Navistar, is is a good company to work for.

US consumers can still expect to get a quality built, made in the USA, vehicle from International Truck & Engine, a name long associated with the best US industrial companies.

[Jestme13]

I hope you feel that way when they drop the Workhorse moniker for the IH logo.

PS: I remember when IH built pickup trucks, maybe, its time they do it again.