GM Dumps Medium-Duty Trucks
Published: December 20th, 2007
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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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Another blow for Flint. Will there be any vehicle manufacturing left in Flint after Navistar moves this truck production to another site?
This is getting confusing. Navistar will now be selling GM trucks (will GM still be manufacturing the parts and bodies shared with other models?)with Isuzu/GM engines whilst also supplying engines to Ford's Super Duty Line. Meanwhile, Ford's medium duty line (F-650, F-750) are powered by Cummins and Caterpillar engines. Cummins is also the sole supplier of diesel engines to Dodge. It's like a soap opera. Everybody's in bed with everybody else.
" but isn’t it true that the Navistar engines for workhorse F450s and higher are conflicting with this latest acquisition? " I wouldn't call it conflicting. I'm sure Navistar can make plenty of engines for Ford and for the GM trucks if they want to. At the moment the GM diesels come from Isuzu, but that could change. Heck, anything could change. Ford is said to be developing it's own next generation diesel and the ongoing legal battles between Ford and Navistar over Powerstroke engines seems destined to unravel that relationship sooner or sooner. I wonder if at some point Navistar will merge with Paccar to try and compete with the global big dogs Mercedes and Volvo.
I agree with Geotpf, GM is burning the last of the furniture. After Saab, what is left? Nothing. Do or Die. Make money selling cars or lights out. This one should be filed under GM DeathWatch. Looking at the press release, it appears as if GM sold GMC (mostly) to Navistar. Who would then produce Chevy/GMC branded Class 4~8 trucks for sale on Chevy/GMC lots. And also on Navistar lots???? I may be wrong, but did GM just sell branding rights to another manufacturer? Is this the opening salvo in GM outsourcing itself and becoming just a "brand," like Nike? Crank up Credence Clearwater Revival. "I see the bad moon arising. I see trouble on the way. I see earthquakes and lightnin. I see bad times today"