By on June 10, 2016

2016 Chevrolet Express 2500 Cargo Van

To keep up with demand for its midsize pickups, General Motors signed a deal to have Navistar International Corp. take on the task of assembling its commercial vans.

The agreement, released yesterday, will see Navistar assemble the Chevrolet Express and GMC Savana in a Springfield, Ohio plant starting early next year. Booting the vans out of GM’s Wentzville, Missouri plant frees up capacity to build more Chevy Colorado and GMC Canyon pickups.

According to the Wall Street Journal, GM first approached AM General LLC to handle its van production, but those talks went nowhere.

With more room in Wentzville, GM will be able to tailor production to demand and (it hopes) regain lost market share. The automaker’s share of the light truck market dropped 2.3 percent this year compared to the same period in 2015. Last month that saw sales in all GM divisions slide sharply.

To produce the vans, Navistar plans to hire about 300 new employees and re-start an assembly line that sat idle at the Springfield plant for some time. GM already tapped the truck manufacturer to produce medium-duty commercial trucks starting in 2018.

The van contract is good news for Navistar, which just reported its first quarterly profit in four years. The company’s fortunes slipped due to lower demand for Class 8 commercial vehicles.

After re-entering the market in the fall of 2014, U.S. sales of GM’s Canyon/Colorado twins hit 114,505 units last year.

[Sources: Wall Street Journal]

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63 Comments on “GM Offloads Van Production to Boost Midsize Pickup Assembly...”


  • avatar
    Scoutdude

    It is not the first time Navistar has assembled a GM van based product. When Navistar purchased the P-series from GM and renamed it Workhorse they also assembled the over 1 tom cutaway version of the van which carried the name GMC 35000 HD by Workhorse.

  • avatar
    Arthur Dailey

    Just another kick in the crotch to all of us who remember the GM van plant in Scarborough which at one time produced all GM vans for the North American market. And during the time when vans were a common sight on the roads as daily drivers.

    • 0 avatar
      brettc

      Chatham used to have a Navistar heavy truck plant that was idled. They could have built these vans there, if Navistar hadn’t levelled the plant several years ago. At least they’re not sending production to Mexico.

      • 0 avatar
        RobertRyan

        Navistar is struggling and needs the work. Interesting to see GM do this because of the high and unmet demand of their Midsize Pickups. Fellow NA Class 8 manufacturer PACCAR made a loss last year as a result of a US$1Billion fine that it’s DAF subsidiary incurred in Europe

  • avatar
    Kenmore

    “To keep up with demand for its midsize pickups”

    Perhaps Deathwatch II is premature.

    • 0 avatar
      davefromcalgary

      Who knows? All I know is that I really wanted to like the GM midsize twins, and boy were they a let down. I’d love a smaller truck, but GM screwed them up.

      Trolling kijiji for stepside Sonomas and evem GMT400 C1500 trucks in good shape.

      • 0 avatar
        Kenmore

        I recuse myself on those. I’m never again giving up the garage space for even a “midsize” pickup and I’m never again parking anything outside. No more pickups for me.

        But I’ve never owned or driven a Chevy truck I didn’t love.

        Wait.. my Dad’s ’58 Apache was an ass-freezing slug in the winter. But they all were back then.

  • avatar
    sgeffe

    More membrane switches on more steering wheels.

    Honestly, were I in the market for any pickup, a loaded 2009 F-150 would top the list. Best looking of them all before the Tonka designers took over.

  • avatar
    jjster6

    I couldn’t disagree move Dave. The Colorado is awesome. About to lease my second. The resale value on the first is so high the dealer wants to buy it back, give me money back, and let me lease a 2016 (same truck) for 50 bucks a month less. And I’m going to let him.

    • 0 avatar
      DenverMike

      Keep us posted. Dealers always send out those amazing offers for your current ride. Except when you get there it’s a different story.

      • 0 avatar
        jjster6

        I’m sure this isn’t a bait and switch. Dealer is a family friend and we have a signed contract.

        I also know a few others who have completed this offer and it worked out just fine.

        I’m interested to know Dave how you think the Colorado is screwed up? I think it’s perfect except for the ridiculously low front air dam. And I have the dealer deliver mine with air dam removed. Then it’s perfect.

        • 0 avatar
          davefromcalgary

          Hey jjster6. First, thanks for understanding this is my opinion and I am not attacking you, your choice or your judgement.

          Let me start off by acknowledging that in terms of comfort, ride, refinement, these trucks are top shelf.

          Exterior design. If they had just made it a 3/4 scale Sierra, it would have been fine. But I really dislike the upward sweeping beltline and weird box cutline. Then they are also really awkwardly tall, you can see the frame like its a 2500. The box is way to tall for the cab, its just all wrong proportionally, to my eye. It just rubs me the wrong way.

          When you get inside, and I found that it suffers from the typical modern issue of being much smaller on the inside than the outside would suggest. I do like the way its optioned and designed, it just felt way to small for the outward size.

          Lastly, the air damn which you mentioned, but also, it just came with the wrong motor. It should have the 4.3L, which is a great truck motor. The 3.6L, while plenty powerful, is a typical OHC motor in the way it makes power. I think the SBC derived V6 just makes a lot more sense.

          Honestly, if the looks were fixed, I could probably overlook the cramped interior and 3.6L. I DO think the underlying package is decent. But yeah, the looks just ruin it for me.

          • 0 avatar
            jjster6

            I love the tall look. A jacked up look is perfect. I don’t think a 3/4 Sierra would look anywhere near as good. Plus it’s not too hard to get into. Don’t need a stupid set of running boards.

            As for being smaller on the inside, I’m very impressed with the room. Not as big as a full size but in this vehicle I don’t need to put the seat all the way back, an issue I have with a lot of vehicles. The belt line isn’t too high and I can fit 3 kids in the back, 2 in full child seats. Can’t seem to do that in most mid-sized cars.

            Finally I thought the engine was a car engine too but it works just fine in the truck. Smooth, quiet, fairly good fuel economy, plenty of power, and can handle towing. I’ve pulled 4000 pounds with no drama. Rated for 7000.

            Mine is a Z71. Does well off road. The new one is going to get a lift kid and some meatier tires. I think you really need to give the truck another look. Styling is a personal matter but I just don’t get a lot of your other criticisms.

        • 0 avatar
          DenverMike

          Negative depreciation happens in rare instances, but for common Chevys? OK.

          • 0 avatar
            jjster6

            The Chevy’s of today are very good vehicles. Not perfect, but in a lot of cases top of the class or very close. Are they perfect, no. Are any cars perfect, no.

    • 0 avatar
      davefromcalgary

      Really glad you like them. They just didn’t meet my hopes.

    • 0 avatar
      Big Al from Oz

      jjster6,
      Here in Australia we also have the Izuzu Dmax, which is based on the same platform. It seems to get better reviews than the Colorado.

      It’s a pity you can’t get these imported. They have a Izuzu diesel, Aisan transmission and different rear axle.

      And they are generally cheaper than the Colorado.

      • 0 avatar
        DenverMike

        Not just the Isuzu P’ups, it’s shame we can’t get Isuzu cars imported either. Just for Joe Isuzu commercials alone!

      • 0 avatar
        RobertRyan

        @Big Al from Oz
        Seemingly no correlation to their on paper performance. Every report I read praises their towing and carrying capabilities.
        On the other hand the Colorado is probably the worst of the bunch

  • avatar
    eggsalad

    Fleet managers are scared of modern vans and would rather purchase these dinosaurs.

    • 0 avatar
      Scoutdude

      Actually fleet managers are buying lots of Transits, more than the Chevy and GMC versions combined. Of course some of that may be due to the fact that already GM cut production of their vans to make more pickups. It also probably doesn’t help that they dropped the 15000 versions to dodge CAFE. However Ford had beat them to that punch by making the E150 have a 8520lb GVW or the same as the E250 used to have.

      I do have to wonder if the real reason behind this is to be able to ramp up van production, because their sales are up so far this year.

      • 0 avatar
        eggsalad

        The base Transit (with rebates) starts cheaper than the base Express (with rebates).

        Whether or not it’s a better vehicle, fleet buyers often choose the *cheapest* vehicle in the class.

        • 0 avatar
          Scoutdude

          If fleet managers were only concerned with the purchase price the ProMaster would be at the top of the charts.

          Expected up time and total cost of operation, including maintenance and repairs as well as purchase price less resale value is what smart fleet managers care about.

          • 0 avatar
            Eyeflyistheeye

            Fleet manager checking in. The Promasters are horrible for delivery usage. While the Transits aren’t anything to write home about due to the fact that the current fad for making thinner and lighter vehicles means that the Transits encounter door hinge problems, latch issues and ding easily, the Promasters are horrible. We get them from Enterprise and even my friend, the branch manager for the location who I’m nice to (never mind that she looks like Emma Stone) told me to never buy a Promaster due to the hinge issues and the transmission problems. I came in after they bought the vans, if I were to do a van for delivery, while I’m a Euro Ford guy all the way, I’d take the Express (last of the American “refrigerator” vans that can take abuse) or the Nissan NV (a reliable, if gas-guzzling dinosaur).

      • 0 avatar
        RobertRyan

        Here Transits are paying 3rd fiddle to Renault Vans. GM Vans in Europe are rebadged Renault Vans, built in the same factories

        • 0 avatar
          Big Al from Oz

          RobertRyan,
          The reason is more competition against Ford here. Ford must compete not just with other manufacturers, but other countries, with little restrictions on imports.

          We have vans from a variety of countries. This is good as we get the best value from this competition, considering the number of vans sold here.

          I do know the Kia K2900 sells roughly 1 000 units a year. The K2900 is a trayback/flatbed that is the size of a midsize ute/pickup with little duals and a 10′ tray on the back and can put to shame most any pickup for carrying capacity.

          They can carry around 4 000lbs or 1 800kgs and sell for around $29 000AUD or $22 000USD “driveaway no more to pay”. What is good about these vehicles, including the vans is their FE vs work if you operate a business.

          • 0 avatar
            Scoutdude

            Hmm, what I see says they are only good for 3300 lbs or only slightly more than my 2009 E-150’s 3200 lb rating, or a F150 with the heavy payload package and that is the lowest of the E-Series or F-Series. The fuel economy doesn’t sound that good either and the test I just read says it doesn’t match the rated 23mpg which you can get in an American 1/2 ton with a inexpensive to maintain gas engine.

          • 0 avatar
            RobertRyan

            Scoutdude,
            I would not include the Kia( ISIS’s friend), for light delivery vehicles. IVECO or the Renault have 5,500lb to 9,000lb payloads,( Cab Chassis versions)Vans from 4,500lb to 8000lb similar fuel economy, and ergonomics as the little Kia.,IVECO as a Van is too noisy( relative) and rough riding, needs retuning for Australian roads As a Motohome base it is brilliant.Renault Master is definitely the most popular light delivery Van around.Transit has problems. Ducato has same unrefined aspects, but is a smooth riding Motohome base, but not as capable as the IVECO

          • 0 avatar
            Eyeflyistheeye

            You miss the point as usual, BAFO. As a fleet manager, I am not going to save a couple thousand (which is small fries for a delivery business which the minimum in our field is worth at least $3,000,000) to go buy a van made by some unknown Chinese company because guess what? I can’t get parts for them, the resale would be garbage and I’m taking a huge effing gamble on reliability. Not to mention that fleet maintenance companies are proficient with the Sprinter/Transit/Promaster/Express/NV because each of their manufacturers has to intentionally make the vans friendly for fleet usage to survive in the market and to sell to Hertz/Enterprise and the like to rent to us.

            The enemy isn’t the $10,000 or so I’d save earlier on, the enemy is downtime and parts availability. Since we buy in bulk, this is the difference since I can get a deal from Ford. And this applies to for tradesmen, personal transport companies along with private van owners. Anyone in the United States who needs a van for their livelihood would rather have a used Transit/Express/Sprinter than a new Chinese van. If buying cheap no-name vans appeals to the Australian public, that’s fine with me, but don’t use it as some garbage excuse as usual to pile on our nation which you profess to dislike but have an unhealthy obsession with.

      • 0 avatar
        Big Al from Oz

        Scoutdude,
        1.8 tonnes is not 3 300lbs. Multiply 1.8 tonnes is 1 800kg (kilogram) and there is roughly 2.2lbs (pounds) to the kg.

        So here’s some arithmetic;

        1 800 X 2.2 = ? 3 300? Wrong.

        The K2900 with the flat bed is rated to around 3 960lbs. I was wrong.

        And, how many pickups in the US are sold with over a 3 960lb payload capacity? 20%, 15%, I’d say less than 10%.

        So, my comment that the K2900 does indeed put many full size pickups to shame in the payload department.

        Do you agree??

    • 0 avatar

      The good thing about a vehicle that hasn’t really been updated in 30 years is that all the kinks have been worked out.

      • 0 avatar
        heavy handle

        You would think all the kinks would be worked-out, but that’s not my experience from renting these. Last one I got had less than 1,000 miles on it, the paint was terrible, and the differential whined like crazy. Those are both signs of worn-out tooling and old factories.

        On top of that, they still have lousy handling, torture seats, sub-5 feet load height, and an idiotic lack of tie-downs in the back.

        The only reason GM still makes these is that they don’t have anything else. Their European vans are made by Fiat (the Promaster City we get here as a Ram), and by Renault/Nissan.

        • 0 avatar
          eggsalad

          …and GM obviously can’t make a small commercial van, either, which is why they sell a re-badged Nissan.

          • 0 avatar
            Scoutdude

            Or they realize that the market is overcrowded and see that the only way anyone other than Ford is going to make money in that segment is to sell a rebaged product. Nissan of course has the extra capacity since the Taxi of the future deal went south so they are happy to move a few more units in hopes of someday amortizing their investment without the captive NYC Taxi market that they could have charged pretty much what ever they want under the mandate.

          • 0 avatar
            Big Al from Oz

            Scoutdude,
            The only reason the US van market is over crowded as you term is because of the inability to import vans profitably.

            Vans must be made in the US. So, this places constraints on variety on offer to the consumer. X amount of vans must be manufactured to maintain viability of US van production.

            So, you view regarding the limitations on overcrowding was created by poor policy and regualtory control of a supposedly free market. Free market I aske myself?????

            If vans were easier to import you would find much room for more product.

          • 0 avatar
            bball40dtw

            If a manufacturer wants to sell a van here, they figure out how to do it. Ford, FCA, Mercedes, Nissan, and GM all sell vans in the US that are not built in the US. The biggest barrier to entry for another company to sell a van is setting up some sort of network to sell the van.

          • 0 avatar
            Scoutdude

            More available vans would not increase the sales numbers, so any new vans would have to take a slice out of the 50% that Ford leaves for the other 4 players to scrap over. Go over to goodcarbadcar and take a look at the numbers. The only ones making money in the segment are Ford, because they own segment with over 50% market share and GM because the tooling for their full size product is long paid for and they just stick a badge on the compact product.

          • 0 avatar
            Big Al from Oz

            bball,
            The problem is the constraints placed on manufacturers. The same problem applies for imported van and pickups into the US. They are taxed if not made in the US.

            This would force van prices down, in the same fashion pickup prices would be reduced if more competition was there.

            What is the profit on these vehicles? Pickup 25%. Seems to be enough room for competition. I don’t know the profit margin for vans though.

          • 0 avatar
            DenverMike

            @BAFO – 1st, they don’t have to be made in the US. There’s Mexico, but 2nd, assembly/labour is a tiny part of over all costs.

            And mostly, if a manufacturer is afraid of a little extra labour, doing final assembly when they hit shore, via CKD kits, they’re in the wrong stinkin’ business.

            Except the 25% profits comes from decades of building sales, up to 700,000+ units in a normal year, plus relatively high % of luxury, premium trucks commanding often $60,000+, after rebates.

            Finally, pickups and vans are crazy expensive to build, with almost endless combinations of trim, packages, engines,d 4wd, cabs, beds/bodies,axle ratios, wheelbases, dual rear wheels, etc, etc. Add to it, “fleet buyers” sitting, waiting like vultures, waiting to dig into profitability at the lower end.

            If a new pickup or van manufacturer were to enter the US market for the 1st time, “lower end” cheapskates and bottom feeders are about the only thing they can hope for, especially “fleets”.

            It’s very doubtful, any global pickup or van makers would consider entering the US market, when the Chicken tax is gone. Think about all the cheap to build, compact cars from around the world, that their manufacturers don’t care to join the US market. “No stinkin’ way.” they no doubt say.

        • 0 avatar
          Rick T.

          Out near the Nashville airport on Murfreesboro Road there is a place that sells these apparently exclusively. Almost every one has the white paint peeled off parts of the hood(?).

        • 0 avatar
          dal20402

          Yes, this is a good point. If the move to Navistar means some new tooling then the Navistar-built vans may be the best GM vans in some time.

          Of course, it doesn’t really matter, because the Transit is two decades more up-to-date for the same price, and is curb-stomping everyone else in the segment as a result.

          • 0 avatar
            Scoutdude

            I doubt it makes much sense to do any new tooling that is specific to the vans. The reality is that the GM vans are on borrowed time before they get at least a major makeover or are discontinued. I wouldn’t be surprised if they are on their way to being discontinued and this is a step in that direction that will insulate them when they do cancel it. GM won’t be closing a plant or laying off workers it will be Navistar that is closing a plant and laying off workers.

          • 0 avatar
            Big Al from Oz

            Why not use the Colorado chassis for the next GM use van?

          • 0 avatar
            Scoutdude

            Why not use the Colorado chassis? Have you ever actually looked under a pickup and van? Obviously not because a pickup’s frame has a kick up after the cab for bed mounting while a van uses a straight frame. So bye-bye to using the frame. It is also too narrow and I highly doubt the front suspension could achieve a 4000+lb weight rating that is needed for a full range of vans. So bye-bye front suspension. Out back not only is the rear axle too narrow it too would not support the 5500+lb rating that they would need for a full range of vans. In fact it probably wouldn’t cut it to replace the lightest current version of the GM vans.

            So yeah some of those components might be suitable for a midsize van, which Mercedes can’t even move 500 units of per month, but they would never cut it for a real commercial full size van.

          • 0 avatar
            DenverMike

            Vans can’t use pickup chassis’.

            The Peugeot van for instance, we can’t get imported. It sadly couldn’t get past “X amount” sales threshold to “maintain viability”, but it’s the same thing with Peugeot cars, except who’s gonna cry for them??

          • 0 avatar
            Big Al from Oz

            Scoutdude,
            The Titan is largely based on the Nissan van.

          • 0 avatar
            Scoutdude

            You’ve got that backwards Al the NV uses some Titan parts but they are very minimal and they certainly don’t use the same frame between the two. It is pretty much the rear axle, brakes, engine, trans and some interior pieces.

  • avatar
    Rental Man

    GM vans have been pushed aside for pickups for over a year now.
    Ford is king of this category, yet RAM has got a market for FWD and being much shorter then others. Nissan NV has been picking up sales and offers a full 5 year / 100000 bumper to bumper factory warranty.

    BTW, Why do the Sprinters rust like crazy?

    • 0 avatar
      bball40dtw

      “Why do Sprinters rust like crazy?”

      Because they paint the US bound vehicles with the spit of various EU leaders.

    • 0 avatar
      Big Al from Oz

      Rental Man,
      I would say if you received imported Sprinters from the EU they would be much better.

      The US vans are just assembled, including surface finishing in the US.

      I’d also say it has something to do with the way they are assembled at the plant as well. Some short cut or something to reduce the costs of assembly.

      There is no logical reason why the US vans should rust out quicker than EU vans other than shoddy work to save a buck.

      EU Sprinter painted with the “spit” of EU leaders is kind of misleading and a disingenuous statement.

      • 0 avatar
        bball40dtw

        It was a joke Al.

        And US Sprinters come from Germany, just like the EU Sprinters. They are just shipped partially disassembled and reassembled in South Carolina. The passenger versions are not disassembled.

        In a few years they will be made in South Carolina for the US market.

      • 0 avatar
        Scoutdude

        No the vans are not assembled in the US they have their engines and transmissions re-installed in the US, nothing more.

      • 0 avatar
        Scoutdude

        @bball I got what you were saying I was responding to little al and his “The US vans are just assembled, including surface finishing in the US.”

        • 0 avatar
          bball40dtw

          Haha. Ok, good.

          I see Sprinters around the Detroit area looking like they are sweating rust. It’s ridiculous.

          • 0 avatar
            Scoutdude

            I’ve seen pics of some of those Sprinters from other areas of the country and it is incredible how they appear to be seating rust as you say. Living in the PNW vehicles in general just don’t rust so I’ve never seen the really bad examples in person.

      • 0 avatar
        Eyeflyistheeye

        What does the Australian motor industry have in common with a cheap hooker? The most enjoyable part for the car companies is when they were able to pull out.

  • avatar
    Big Al from Oz

    I’d say GM must move rather quickly in increasing output of the Colorado/Canyon.

    They will have Nissan with the new Frontier, Ford with the Ranger and maybe a FCA/Jeep/Ram pickup to compete against in the near future.

    Better to set up shop and produce what will be more profitable in the longer term than to build Trabant style vans.

    I also believe GM is now at the limit of continually gaining the most money from the Colorado/Canyon. If more are produced the prices will drop to move them.

    Over the past couple of days I’ve read some interesting articles relating to the global and even the US outlook economically. It goes against the comment that new US vehicles sales will remain at roughly the current numbers.

    The World Bank and others have revised the outlook for US economical growth down by around one third. The IEA predicts that India will increase the use of crude, so all isn’t as bright as that TTAC article presented the other day.

    I’d expect a downward revision of new US vehicle sales to come out. The effect of those cheap financial instruments currently used to sell vehicles can’t last for ever.

  • avatar
    Jeff S

    If GM produces enough Colorado/Canyons and adds a little more discount then I might bite and get a silver Base Colorado with the 6 speed manual. I see a few of them advertised but most are at list price. If they got the price down to 19k I might bite.

  • avatar
    Lou_BC

    GM lost 2.3% market share in the pickup segment even with the Colorado/Canyon?

    No wonder they have ramped up the attack adds on Ford’s aluminum pickup.

  • avatar
    Jeff S

    I don’t care that much for the Chevy ads nor do I care for any attack ads. Lou do you know where GM lost the sales? Was it fleet? Mary Barra came out recently and said that GM was reducing its fleet sales? If Colorado/Canyon are losing sales then why is GM expanding production of them? Why is Ford reconsidering a new Ranger if the sales are not that good in the midsize market? There still is a shortage of new Colorado/Canyons which tells me that the demand is still there. I thought you were beyond being a fan boy but maybe you have your Ford moments. Maybe its just me but I am more interested in everyone improving their products and having more choice available. I like competition.

  • avatar
    Jeff S

    I don’t care that much for the Chevy ads nor do I care for any attack ads. Lou do you know where GM lost the sales? Was it fleet? Mary Barra came out recently and said that GM was reducing its fleet sales? If Colorado/Canyon are losing sales then why is GM expanding production of them? Why is Ford reconsidering a new Ranger if the sales are not that good in the midsize market? There still is a shortage of new Colorado/Canyons which tells me that the demand is still there. I thought you were beyond being a fan boy but maybe you have your Ford moments. Maybe its just me but I am more interested in everyone improving their products and having more choice available. I like competition.

    I do agree with Big Al that increase sales cannot be sustained because cheap loans cannot last indefinitely and because the pent up demand for consumers who delayed purchasing a new vehicle during the 2008 Economic fiasco has for the most part been satisfied. I don’t take great comfort in FCAs decline and wish they were doing better.

  • avatar
    bullnuke

    The Springfield Navistar plant was the winner of the “whip-saw” between Springfield and the Fort Wayne Navistar plant some 30-years ago. For many years some of the displaced Fort Wayne workers were bused down to Springfield on Sunday night, worked Monday through Friday living in trailers and returned to Fort Wayne on Friday night. The Springfield plant has a history as a labor minefield and some variable assembly quality issues. Some of my high school buds went to work there and told tales of lug nuts in the tires before mounting as well as empty beer cans inside the fenders of high-dollar vehicles to give the correct new truck feel and “rattle”. I can remember that the “breakdown lot” at the end of assembly was always 2/3 more full than the “delivery lot” out at the plant on North US 68.

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