General Motors has sold its US medium truck business to Navistar.
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In a statement, GM said it had entered a non-binding memorandum of understanding with Navistar subsidiary International Truck and Engine Corporation to sell key assets, intellectual property and distribution rights of the business.
This would allow Navistar to make GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range and includes the related service parts business.
Navistar would sell a line of Chevrolet and GMC vehicles and service parts through GM’s dealer network in the United States and Canada.
“The agreement is another step in GM’s plan to focus on designing, manufacturing and selling cars and light trucks globally. The deal would leverage Navistar’s strengths in commercial trucks and engines, and advance its strategy to build scale and reduce costs,” the statement said.
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By GlobalDataNavistar would add the GMC TopKick and Chevrolet Kodiak truck brands to its International brand trucks and tractors, IC brand buses, Workhorse brand chassis for motor homes and step vans, and MaxxForce brand engines.
When the deal is finalised, production of the vehicles would move from GM’s plant in Flint, Michigan, to an as yet unnamed Navistar facility to be named. GM would retain the Flint plant and continue to build other products there.
GM will continue its medium-duty truck relationship with Isuzu to market W-series trucks through GM’s medium-duty dealer network.
GM said the Navistar deal is expected to close in 2008.
