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Navistar to Acquire GM’s Medium-Duty Truck Business
20 December 2007
GM and International Truck and Engine Corporation, the principal operating subsidiary of Navistar International Corporation, have entered into a non-binding memorandum of understanding under which Navistar would acquire GM’s medium-duty truck business, which includes assets and intellectual property rights to manufacture GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range.
The agreement also includes 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 the United States and Canada.
GM says that the agreement is another step in its plan to focus on designing, manufacturing and selling cars and light trucks globally. The deal would leverage Navistar’s strengths in commercial trucks and engines, and advance its strategy to build scale and reduce costs.
Navistar would add the GMC TopKick and Chevrolet Kodiak truck brands to its growing portfolio of brands, which currently includes International brand trucks and tractors, IC brand buses, Workhorse brand chassis for motor homes and step vans, and MaxxForce brand engines.
When a deal is definitively concluded, production 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.
The deal is expected to close in 2008 subject to completion of satisfactory due diligence, the negotiation of a definitive purchase agreement, customary regulatory clearance and board approval. Upon closing, transition of the business could take several months to conclude.
December 20, 2007 in Brief | Permalink | Comments (4) | TrackBack (0)
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Comments
This could be the end of Ford's light truck diesel engine supply. Since the bad feelings between Ford and Navistar over the supply and pricing of engines last year, it seems likely Navistar would be only interested in suppling one line of trucks
Posted by: Alan | Dec 20, 2007 12:42:23 PM
This could be the end of Ford's light truck diesel engine supply. Since the bad feelings between Ford and Navistar over the supply and pricing of engines last year, it seems likely Navistar would be only interested in suppling one line of trucks
Posted by: Alan | Dec 20, 2007 12:43:29 PM
Sorry for the copies.
Posted by: Alan | Dec 20, 2007 12:44:19 PM
Actually ford has been working on in house diesels for several years to replace the navistar engines, as the contract is up in 2010 or 2012. There has even been litigation revolving around fords testing of smaller diesel engines for the under 8500 gvw market. Ford has used navistar for its diesel engine supplies for the light duty vehicles for many years, there has been application of south american produced diesels in the medium duty and also in the tempos and/or ranger vehicles in the 1980's.
Posted by: JW | Dec 20, 2007 7:06:13 PM
