December 21, 2007
General Motors and Navistar reach tentative agreement on medium-duty truck business
GM and International Truck and Engine have reached an agreement under which Navistar would acquire GM’s medium-duty truck business. Click image to enlarge
New York, New York – General Motors Corporation and International Truck and Engine Corporation, the principal operating subsidy of Navistar International Corporation, have reached a tentative agreement under which Navistar would acquire GM’s medium-duty truck business.
Under the proposal, Navistar would purchase certain assets, intellectual property and distribution rights to manufacture GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range, along with purchase of the related service parts business. Navistar would sell a competitive line of Chevrolet and GMC vehicles and service parts through GM’s proprietary dealer network in Canada and the U.S.
Navistar would add the GMC TopKick and Chevrolet Kodiak truck brands to its portfolio, which currently includes International trucks and tractors, IC buses, Workhorse chassis for motor homes and step vans, and MaxxForce engines. When the deal is definitely concluded, production of the vehicles will move from GM’s plant in Flint, Michigan to a Navistar facility yet to be named. GM would retain ownership of its Flint plant and continue to build other products at the facility.
GM will also continue its medium-duty truck relationship with Isuzu to market W-Series trucks through GM’s medium-duty dealer network.