NEW YORK, Dec 19 (Reuters) - General Motors Corp will sell its profitable medium-duty truck unit to Navistar International Corp, The Wall Street Journal Online reported on Wednesday.
An announcement is expected on Thursday, the Journal reported, citing people familiar with the agreement.
The report did not include terms of the sale.
Navistar spokesman Roy Wiley said that while the truck and engine maker was "very excited" at the prospect of buying GM's medium-duty truck unit, he could not confirm that an announcement would be made on Thursday.
GM, which did not immediately return calls seeking comment, sells the medium-duty trucks under the nameplates Kodiak, TopKick and Isuzu T-Series. It made 59,000 medium-duty trucks in 2006, about 12 percent of the market.
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StoneyPgh wrote: First Allison, then MDTs.
What's next?
My feelings, exactly. Another great move by GM. We have two chevy dealers that also sell GM medium duty trucks. Wonder how the GM dealers that also sell medium duty GM trucks are going to take this drop in the GM line.
GMC has been going since the early 1900's. Will the name GMC still find itself on medium duty trucks or will the line just be completely absorbed by IH ?
kaydeejay wrote: Hmmm, if it's "profitable", why sell it??
That's why they are selling it! If you need cash you can't sell something that is worthless or not making you any money. GM is hurting like Ford and Chrysler and they need money and are downsizing and cutting cost.
GM has bought and sold many divisions over the years and this one is just ridding itself of another non-core product line so they can focus on what they do best. Somebody mentioned Allison, there is a good example of a division they no longer need since they developed (co-developed with Ford) the new line of 6-speed Hydra-Matic’s.
GM used too own the revered heavy diesel manufacturer Detroit Diesel along with substantial holdings in Isuzu. They no-longer have those either (except the current co-manufacturing agreement with Isuzu) and decided to take light diesel manufacturing back in-house. Looks like they made another good decision.
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BiGG wrote: GM has bought and sold many divisions over the years and this one is just ridding itself of another non-core product line so they can focus on what they do best. Somebody mentioned Allison, there is a good example of a division they no longer need since they developed (co-developed with Ford) the new line of 6-speed Hydra-Matic’s.
GM used too own the revered heavy diesel manufacturer Detroit Diesel along with substantial holdings in Isuzu. They no-longer have those either (except the current co-manufacturing agreement with Isuzu) and decided to take light diesel manufacturing back in-house. Looks like they made another good decision.
Don't forget the heavy equipment manufacturer, Terex.
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The Texan wrote: NEW YORK, Dec 19 (Reuters) - General Motors Corp will sell its profitable medium-duty truck unit to Navistar International Corp, The Wall Street Journal Online reported on Wednesday.
An announcement is expected on Thursday, the Journal reported, citing people familiar with the agreement.
The report did not include terms of the sale.
Navistar spokesman Roy Wiley said that while the truck and engine maker was "very excited" at the prospect of buying GM's medium-duty truck unit, he could not confirm that an announcement would be made on Thursday.
GM, which did not immediately return calls seeking comment, sells the medium-duty trucks under the nameplates Kodiak, TopKick and Isuzu T-Series. It made 59,000 medium-duty trucks in 2006, about 12 percent of the market.
Navistar, GM drop deal for truck division
WARRENVILLE, Ill. (AP) - Navistar International says it's dropping its immediate plans to buy GM's medium-duty truck business.
Navistar International Corp. said the decision was prompted by marketplace and economic changes.
The Warrenville, Illinois-based commercial truck maker and General Motors Corp. said they decided against renewing the sale's memorandum of understanding, which has expired.
Navistar said that Detroit-based GM will continue to run the business, while also continuing to review strategic options for it, including continued discussions with Navistar.
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Another great move by GM. We have two chevy dealers that also sell GM medium duty trucks. Wonder how the GM dealers that also sell medium duty GM trucks are going to take this drop in the GM line.
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