After four years of working with multiple potential buyers, General Motors has decided to wind-down its medium-duty truck operations, the automaker said in a statement.
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Production of the Chevy Kodiak and GMC Topkick medium duty trucks will end by 31 July.
The automaker sold about 20,000 of the vehicles last year, down from roughly 30,000 in 2007, as the US economy sank into a deep recession, Reuters reported.
Chief executive Fritz Henderson told the news agency at an event in Warren, Michigan, that the medium-duty truck the business had not been successful for years and workers would be deployed to other facilities or offered an attrition programme.
About 400 hourly and salaried workers are involved in the production of the medium-duty trucks at a GM plant in Flint, Michigan, spokesman Jim Hopson told Reuters. The Flint plant has more than 2,100 employees overall and also builds light pickup trucks for GM. The automaker plans to continue production of the pickup trucks at the plant.
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By GlobalDataNavistar International Corp had been one of the potential buyers for the GM medium-duty truck operation, Reuters noted. GM and Navistar had reached a tentative agreement on a sale, but the pact expired in August 2008 without a deal being reached.
