Corp. confirms it will sell its medium-duty truck business to International Truck and Engine Corp., a subsidiary of Navistar International Corp.
A memorandum of understanding between the companies says Navistar will acquire the assets and intellectual property rights of GM's medium-duty truck business, which builds GMC- and Chevrolet-brand vehicles in the Class 4-8 range.
Related service parts business also falls under the agreement. For GM, the deal signals increased focus on its light-vehicle business. For Navistar, it portends expansion for its commercial truck business.
Says Daniel C. Ustian, Navistar chairman, president and CEO: “(Navistar) will utilize the scale to build on the success of both the International and GM product lines and their respective distribution networks.”
The deal adds the GMC TopKick and Chevrolet Kodiak truck brands to Navistar's lineup, which currently features International-brand trucks and tractors and MaxxForce-brand engines. Production will move from GM's plant in Flint, MI, to a Navistar site the truck maker does not identify.
The deal should close in 2008.