GM Dumps Medium-Duty Trucks
Reuters says the deal is done: GM has sold their medium-duty truck business to Navistar International Corp. The deal gives Navistar "intellectual property rights to manufacture GMC and Chevrolet brand vehicles in the class four to eight gross vehicle weight range and distribution rights for GM's medium-duty truck unit." Under the new ownership, production will move from GM's plant in Flint, Michigan to an unnamed Navistar facility. The terms of the deal were not disclosed, but its biggest benefit is supposedly allowing GM "to focus more on its core business of making cars and sport utility vehicles." That and pay off some of GM's debt. Or make the bottom line look good for the quarter. Or both.
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