LinkBack URL
About LinkBacks
Navistar to Buy GM's Commercial Truck Business
Navistar International Corp. on Dec. 20 agreed to buy the assets and distribution rights for General Motors Corp.'s medium-duty commercial truck business. The announcement came less than two months after Daniel Ustian, Navistar's chairman, president and chief executive officer, publicly confirmed that discussions between the two truck manufacturers were under way. LIGHT & MEDIUM TRUCK reported last March that GM was considering selling its commercial truck business. Under the proposed agreement, Navistar would buy GM's commercial truck business, including the Chevrolet Kodiak/GMC TopKick truck brands, and the T-Series cab-over trucks. Navistar would manufacture, design and market the trucks to GM dealers, Dave Tarrant, managing director of commercial truck strategy for Navistar, said during a telephone press conference. The companies did not disclose exact terms of the proposal. GM would continue to market the smaller W-Series low-cab-forward trucks built for the company by Isuzu in Japan and Janesville, Wis. GM and International Truck and Engine Corp., Navistar's operating arm, reported selling a combined 68,743 trucks in Classes 4-7 through the first 11 months of 2007, according to data from WardsAuto.com. Their combined market share of 34 percent would displace Ford Motor Co. as the top seller of trucks in those classes. [The sale would] "position GM for sustained profit and growth" and enable the company to focus on its core business, "designing and building cars and light trucks," said John Gaydash, marketing director for GM's fleet and commercial operations. The Chevrolet and GMC commercial product lines would remain separate and competitive with Navistar's trucks, Tarrant said. The sale would have no effect on GM dealers, Gaydash said.
Source: Light and Medium Duty Truck Report, Dec. 21, 2007
Reply With Quote
Bookmarks