General Motors is in talks to sell its truck division to Isuzu Motors, according to a Japanese press report.
Last month an agreement to sell the Class 4-8 truck business to Navistar International Corp expired, after a deal failed to take place due to changes in market and economic conditions. That deal covered the sale of the GMC TopKick and Chevrolet Kodiak truck brands, Workhorse brand chassis for motor homes and step vans, and MaxxForce brand engines. Production of the vehicles was due to have been moved away from GM’s plant in Flint, Michigan, to a Navistar facility.
GM already has an agreement with Isuzu to market W-series trucks through GM’s medium-duty dealer network. That would not have been affected by the Navistar deal.
The Nikkei financial newspaper said this would be the first time that a Japanese company had taken over any of the Big Three activities.
The newspaper said that GM approached Isuzu in the middle of September to see if it were interested in acquiring GM’s mid-size truck division. A possible deal could be worth several tens of billions yen.
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According to the Nikkei, Isuzu is reportedly interested in such a proposal and that the next step is to enter into formal negotiations. A sale could take place by the end of the year, it said.
It is not clear if GM would sell any plants as part of the deal. The Nikkei said that Isuzu might also raise its stake in DMAX Ltd, a diesel joint venture in Ohio, USA. GM holds 60% of the joint venture, while Isuzu holds the remaining 40%.
If the deal did take place Isuzu would overtake Hino as Japan’s largest truck manufacturer.
