Navistar Buys GM!
January 31, 2008
Recently, General Motors agreed to sell its entire medium-duty business to Navistar International by the end of 2008. In the non-binding memorandum, Navistar would acquire all associated assets, property rights, and intellectual property related to the GMC TopKick and Chevrolet Kodiak medium-duty trucks, meaning Navistar would be responsible for selling, servicing, and manufacturing the trucks. At this stage, there are no plans to disrupt the relationship with Isuzu, who supplies the Duramax turbodiesel engines, but it shouldn't be too long before a full selection of International engines is offered for the two medium-duty trucks. Admittedly, this is not a large market for GM and we've heard it was shopping it around for about a year. As it stands, GM looks to make a little bit of money out of the deal and Navistar International will get more exposure for its brand. Whether Navistar will be getting into a broader range of medium-duty trucks or even step into the deeper light-duty segment remains to be seen. At least for now, we still have the Kodiak 4x4.