GM Selling Medium Duty Truck Unit To Navistar
Posted Dec 21, 2007 @ 8:49 am
Fare thee well GMC Topkick and Chevy Kodiak. Certain assets, intellectual property and distribution rights for the production and sales of those two medium duty trucks are set to be sold to Navistar. A subsidiary of International Trucks, Navistar was the engine supplier for Ford's Super Duty trucks... until their engines caused flames to shoot out of the tail pipes and Ford dumped them.
The Navistar GM deal is currently an agreement of principle. That basically means they have agreed on the overall terms of the sale, but the exact details have yet to be worked out. The deal is expected to be finalized in the coming months.
Continues after the jump...
This is clearly a move by GM to free up cash. The turn around process for GM's passenger vehicle business has and will continue to be costly, so GM has been selling off assets to fund it. Other assets that have been similarly sold off include Allison Transmition and a majority stake of GMAC.
Although GM will no longer be developing and producing the vehicles, they will still be sold under the GMC and Chevrolet brands.
That means if you want to get medium duty truck with a reliable engine, you had better buy one now before Navistar starts dumping their engines in Topkicks and Kodiaks. Or if you want to intimidate the hell out of the car behind you, wait until Navistar dumps their flame throwing engines in them.
PRESS RELEASE:
GM And Navistar Reach Tentative Agreement On Medium Duty Truck Business
NEW YORK/WARRENVILLE, Ill. -- General Motors Corporation (NYSE: GM) and International Truck and Engine Corporation, the principal operating subsidiary of Navistar International Corporation (Other OTC: NAVZ), have entered into a non-binding memorandum of understanding under which Navistar would purchase certain assets, intellectual property and distribution rights for GM's medium-duty truck business, the two companies announced today.
As proposed, Navistar would acquire GM's medium-duty truck business, which includes assets and intellectual property rights to manufacture GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range. It also includes purchase of the related service parts business. Navistar would sell a competitive line of Chevrolet and GMC vehicles and service parts through GM's proprietary 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.
Troy Clarke, president of GM North America, said, "Navistar's expertise in building International® brand commercial trucks and its track record in the medium-duty segment makes them an excellent choice to acquire and continue growing the business. We intend to work closely with Navistar to make this transition seamless to our dealers and customers."
"This is another example of how we're strategically growing our business for trucks, engines and parts, building scale and reducing costs," said Daniel C. Ustian, chairman, president and CEO, Navistar International Corporation. "We are proud to incorporate the GM truck brands into our portfolio, and will utilize the scale to build on the success of both the International and GM product lines and their respective distribution networks."
Navistar would add the GMC® TopKick and Chevrolet® Kodiak truck brands to its growing portfolio of brands, which currently includes International® brand trucks and tractors, IC® brand buses, Workhorse® brand chassis for motor homes and step vans, and MaxxForce® brand engines.
When a deal is definitively concluded, production of the vehicles would move from GM's plant in Flint, Mich., to a Navistar facility to be named. GM would retain ownership of its Flint plant and continue to build other products at the facility.
GM will continue its medium-duty truck relationship with Isuzu to market W-Series trucks through GM's medium-duty dealer network.
The deal is expected to close in 2008 subject to completion of satisfactory due diligence, the negotiation of a definitive purchase agreement, customary regulatory clearance and board approval. Upon closing, transition of the business could take several months to conclude.
Category: Chevy, GMC, Sales and Financial
Comments (2)
Fare thee well GMC Topkick and Chevy Kodiak. Certain assets, intellectual property and distribution rights for the production and sales of those two medium duty trucks are set to be sold to Navistar. A subsidiary of International Trucks, Navistar was the engine supplier for Ford's Super Duty trucks... until their engines caused flames to shoot out of the tail pipes and Ford dumped them.
The Navistar GM deal is currently an agreement of principle. That basically means they have agreed on the overall terms of the sale, but the exact details have yet to be worked out. The deal is expected to be finalized in the coming months.
Continues after the jump...
This is clearly a move by GM to free up cash. The turn around process for GM's passenger vehicle business has and will continue to be costly, so GM has been selling off assets to fund it. Other assets that have been similarly sold off include Allison Transmition and a majority stake of GMAC.
Although GM will no longer be developing and producing the vehicles, they will still be sold under the GMC and Chevrolet brands.
That means if you want to get medium duty truck with a reliable engine, you had better buy one now before Navistar starts dumping their engines in Topkicks and Kodiaks. Or if you want to intimidate the hell out of the car behind you, wait until Navistar dumps their flame throwing engines in them.
PRESS RELEASE:
GM And Navistar Reach Tentative Agreement On Medium Duty Truck Business
NEW YORK/WARRENVILLE, Ill. -- General Motors Corporation (NYSE: GM) and International Truck and Engine Corporation, the principal operating subsidiary of Navistar International Corporation (Other OTC: NAVZ), have entered into a non-binding memorandum of understanding under which Navistar would purchase certain assets, intellectual property and distribution rights for GM's medium-duty truck business, the two companies announced today.
As proposed, Navistar would acquire GM's medium-duty truck business, which includes assets and intellectual property rights to manufacture GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range. It also includes purchase of the related service parts business. Navistar would sell a competitive line of Chevrolet and GMC vehicles and service parts through GM's proprietary 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.
Troy Clarke, president of GM North America, said, "Navistar's expertise in building International® brand commercial trucks and its track record in the medium-duty segment makes them an excellent choice to acquire and continue growing the business. We intend to work closely with Navistar to make this transition seamless to our dealers and customers."
"This is another example of how we're strategically growing our business for trucks, engines and parts, building scale and reducing costs," said Daniel C. Ustian, chairman, president and CEO, Navistar International Corporation. "We are proud to incorporate the GM truck brands into our portfolio, and will utilize the scale to build on the success of both the International and GM product lines and their respective distribution networks."
Navistar would add the GMC® TopKick and Chevrolet® Kodiak truck brands to its growing portfolio of brands, which currently includes International® brand trucks and tractors, IC® brand buses, Workhorse® brand chassis for motor homes and step vans, and MaxxForce® brand engines.
When a deal is definitively concluded, production of the vehicles would move from GM's plant in Flint, Mich., to a Navistar facility to be named. GM would retain ownership of its Flint plant and continue to build other products at the facility.
GM will continue its medium-duty truck relationship with Isuzu to market W-Series trucks through GM's medium-duty dealer network.
The deal is expected to close in 2008 subject to completion of satisfactory due diligence, the negotiation of a definitive purchase agreement, customary regulatory clearance and board approval. Upon closing, transition of the business could take several months to conclude.
Category: Chevy, GMC, Sales and Financial
Comments (2)
Comments
There are 2 comments
| Posted By skeet @ Dec 21, 2007 |
| ha does this mean that iron hide (the topkick) won't be in the next transformers? |
| Posted By john @ Dec 21, 2007 |
| flames shooting out of the tail pipes? sounds pretty fukin cool to me! |
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