Go Back   iRV2 Forums > TRAVEL TRAILER, 5th WHEEL & TRUCK CAMPER FORUMS > Trailer Towing and Tow Vehicles Discussion
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Reply
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
 
Thread Tools Search this Thread Display Modes
 
Old 05-17-2007, 05:31 AM   #1
Senior Member
 
ChiefJohn's Avatar


 
Winnebago Owners Club
Join Date: Nov 2006
Location: Anywhere, USA
Posts: 2,472
"As the World Turns", the topsy-turvy world of American car/truck manufacturers.

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">GM could sell medium-duty operations to Navistar
by Terrence Nguyen, web editor
May 16, 2007 1:46 PM

General Motors is in talks to sell its medium-duty truck line to International Truck and Engine in a bid to focus on its core car and light truck business, reported The Flint Journal.

Although neither GM nor International would confirm the report, a UAW representative told The Flint Journal he is aware of conversations between GM and International's parent company Navistar. Investment banking firm Bear Stearns noted in January that a medium-duty divesture would be a tempting proposition for the auto giant.

"A sale of GM's medium-duty facility in Flint [is] both logical and increasingly likely as GM turns its focus to just cars and light trucks," stated Bear Stearns. Of the OEMs that could be prospective buyers of the GM commercial vehicle operation, Bear Stearns said International would strategically be the best fit "should [its relationship with Ford] sour further." Bear Stearns was referring to Navistar's ongoing dispute with Ford over payment, which prompted International to halt deliveries of its diesel engines that power Ford Super Duty pickups.

Bear Stearns speculated on a GM medium-duty divesture when the company announced it's open to selling its lucrative Allison operation, a dominant player in the transmission market for medium- and heavy-duty trucks.

The Flint Journal reported that the potential sale would shift volumes from the Flint facility to International's operation in the Midwest. Bear Stearns noted that such a move would boost Navistar's capacity utilization.

Analyst Chris Brady, president of Commercial Motor Vehicle Consulting, said that GM's medium-duty lineup is not so complementary to Navistar's. "I don't see what International stands to gain since the GM product line is a conventional cab," Brady told FleetOwner. "Navistar has a conventional product."

Volvo AB, which lacks a medium-duty product in North America would be a better fit from a product standpoint, Brady said. In February, Volvo AB reported its acquisition of 96% of Nissan Diesel shares, a move that boosted its presence in Asia as well as its global medium-duty volume to about 38,000 units annually. This volume is still a far cry from 126,000 unit volume of DaimlerChrysler and 90,000 by GM-Isuzu based on 2005 data. Read AB Volvo makes $1.1 billion Nissan Diesel bid.

But GM is certain to sell its medium-duty operation when it receives the right offer, Brady noted. "It's a small part of their overall business and competition is increasing in the medium-duty segment," Brady said. "The investment needed to make the [medium-duty] product line competitive will probably increase and they will need all the resources they can get to turn around their automotive business. GM is looking at the competition increasing and asking themselves where do they want to spend their resources" in commercial vehicle or their automotive business. The choice is obvious."
</div></BLOCKQUOTE>
__________________

__________________
John & Marilyn Yoder, Sophie & Misha (Bichons)
2008 Vectra 40TD, WIT-151980 FMCA F265880
ChiefJohn is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 05-17-2007, 05:31 AM   #2
Senior Member
 
ChiefJohn's Avatar


 
Winnebago Owners Club
Join Date: Nov 2006
Location: Anywhere, USA
Posts: 2,472
"As the World Turns", the topsy-turvy world of American car/truck manufacturers.

Quote:
GM could sell medium-duty operations to Navistar
by Terrence Nguyen, web editor
May 16, 2007 1:46 PM

General Motors is in talks to sell its medium-duty truck line to International Truck and Engine in a bid to focus on its core car and light truck business, reported The Flint Journal.

Although neither GM nor International would confirm the report, a UAW representative told The Flint Journal he is aware of conversations between GM and International's parent company Navistar. Investment banking firm Bear Stearns noted in January that a medium-duty divesture would be a tempting proposition for the auto giant.

"A sale of GM's medium-duty facility in Flint [is] both logical and increasingly likely as GM turns its focus to just cars and light trucks," stated Bear Stearns. Of the OEMs that could be prospective buyers of the GM commercial vehicle operation, Bear Stearns said International would strategically be the best fit "should [its relationship with Ford] sour further." Bear Stearns was referring to Navistar's ongoing dispute with Ford over payment, which prompted International to halt deliveries of its diesel engines that power Ford Super Duty pickups.

Bear Stearns speculated on a GM medium-duty divesture when the company announced it's open to selling its lucrative Allison operation, a dominant player in the transmission market for medium- and heavy-duty trucks.

The Flint Journal reported that the potential sale would shift volumes from the Flint facility to International's operation in the Midwest. Bear Stearns noted that such a move would boost Navistar's capacity utilization.

Analyst Chris Brady, president of Commercial Motor Vehicle Consulting, said that GM's medium-duty lineup is not so complementary to Navistar's. "I don't see what International stands to gain since the GM product line is a conventional cab," Brady told FleetOwner. "Navistar has a conventional product."

Volvo AB, which lacks a medium-duty product in North America would be a better fit from a product standpoint, Brady said. In February, Volvo AB reported its acquisition of 96% of Nissan Diesel shares, a move that boosted its presence in Asia as well as its global medium-duty volume to about 38,000 units annually. This volume is still a far cry from 126,000 unit volume of DaimlerChrysler and 90,000 by GM-Isuzu based on 2005 data. Read AB Volvo makes $1.1 billion Nissan Diesel bid.

But GM is certain to sell its medium-duty operation when it receives the right offer, Brady noted. "It's a small part of their overall business and competition is increasing in the medium-duty segment," Brady said. "The investment needed to make the [medium-duty] product line competitive will probably increase and they will need all the resources they can get to turn around their automotive business. GM is looking at the competition increasing and asking themselves where do they want to spend their resources" in commercial vehicle or their automotive business. The choice is obvious."
__________________

__________________
John & Marilyn Yoder, Sophie & Misha (Bichons)
2008 Vectra 40TD, WIT-151980 FMCA F265880
ChiefJohn is offline   Reply With Quote
Old 05-17-2007, 01:34 PM   #3
Senior Member
 
Ray,IN's Avatar
 
Join Date: Aug 2001
Location: North America somewhere
Posts: 13,688
Sounds like lots of speculating and guessing to me, with no-one knowing anything of value. Is the ET show of the automotive world?
__________________
2000 Winnebago Ultimate Freedom USQ40JD, ISC 8.3 Cummins 350, Spartan MM Chassis. USA 1SG, retired;PPA,Good Sam Life member,FMCA."We the people are the rightful masters of both the Congress and the Courts - not to overthrow the Constitution but to overthrow men who pervert the Constitution. "Abraham Lincoln"
Ray,IN is offline   Reply With Quote
Reply



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
mileage longevity for MDT dkacp MDT Conversions 9 07-21-2009 09:05 PM
FOUND A NEW TO ME MDT!! Ryq Trailer Towing and Tow Vehicles Discussion 16 01-31-2007 09:18 PM
Navistar Set to Buy Workhorse Custom Chassis DriVer RV Industry Press 1 07-05-2005 01:18 PM

» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 12:50 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.