• May 18, 2007

In a move billed as potentially assisting Navistar with "life after Ford," the company is talking to GM about buying the General's medium-duty truck unit. Navistar already makes trucks and engines, and talks are only just beginning, but buying the GM unit would allow it to enlarge its market share and remove a competitor. Navistar, if you'll remember, is locked in a legal tussle with Ford to the tune of $2 billion. Navistar says that Ford is looking at introducing its own engines before 2012, in breach of contract; Ford says it's paying far too much for Navistar's 6-liter PowerStroke Super Duty engine issues.

Were GM to sell its medium-duty truck unit, assuming the price were right, GM would shed a non-core division, make a profit, and be able to focus on making cars. GM's medium-duty trucks are sold as the Chevy Kodiak, GM Topkick (aka "Ironhide"), and Isuzu T-Series, which together account for almost 12% of the medium-duty truck market. And apparently the medium-duties aren't the only ones on the block: GM is in talks to let Allison Transmissions go as well.

[Source: Automotive News, sub. req'd]

Related posts:
Navistar Slaps Ford with $2 Billion Lawsuit
Ford Developing New Diesel Engine, Quickly
Ford Supplier Stops Production of Super Duty's PowerStroke



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    • 1 Second Ago
  • 16 Comments
      • 7 Years Ago
      I don't see the loss - GM hasn't put out a decent ½ ton pickup in years, much less a 2½ tonner.

      It used to be that Kodiaks and Topkicks were the most commonly sighted medium dutys out there, now they are virtually non-existent.

      GM has slit their own throats with their inability to leave well enough alone.

      The Duramax is an outright joke in the face of the Cats and Detroits that were the mainstay of GM medium dutys for so long, and the consumers know it. Where my company bought Topkicks for years, F650's with C7's now rule the roost.
        • 7 Years Ago
        you really should do your homework before you talk.. the C6500 through to the C8500 can be had with a Cat or an inline 7.8 litre isuzu 6 cylinder, as for the F650...????
      • 7 Years Ago
      What's amusing is that Ford F-650 and F-750 Medium Duty trucks are now assembled by Navistar in Mexico in a Joint Venture (Blue Diamond). SO you could have Ford, GM, and IH trucks rolling off the same line.
      • 7 Years Ago
      FINALLY! Though it likely won't play out this way, here is a chance to revive THE manliest MUY macho-est US vehicle marque EVAH! . . . wait for it . . . International Harvester!! IH, BayBEE!! Now where do I put down my '11 Scout deposit HUH?!?!? Happy Motoring!
      • 7 Years Ago
      Jellodyne, I believe trucks aren't included in CAFE standards, so the disposal of the medium-duty truck business wouldn't help. If you read the Flint Journal story, it is clear that GM is considering a sale of its Kodiak and TopKick line of vehicles to clear space at the plant for additional heavy-duty pickup production. Plus, GM could make some cash from a sale to Navistar International.
      • 7 Years Ago
      this pick-up on the picture really must be destroy

      http://clubvaio.blogspot.com/
      • 7 Years Ago
      I work at Allison in Indianapolis. Allison builds automatic transmissions for commercial duty trucks. they are in your local buses, ambulance, garbage truck, RV etc. They are sold to (commercial) truck manufacturers world wide--not just put in GM trucks at all. Allison makes more net profit for GM than any other division. naturaly, these dopes want to sell it off for some quick bucks to help bail out the $ they lose making cars.
      • 7 Years Ago
      Why link to a subscription only story when the Flint Journal, which broke the story, offers it for free to readers?

      http://www.mlive.com/business/flintjournal/index.ssf?/base/business-1/1179157820274660.xml&coll=5
      • 7 Years Ago
      If GM sells Allison trans, I will personally find Rick Wagoner and bitch-slap him
      • 7 Years Ago
      Wasn't the Allison Transmission unit largely responsible for GM's hybrid system for transit buses? Isn't Allison Transmission assembling the BAS and Two Mode hybrid systems for GM?

      Selling Allison doesn't seem like a great idea right now. Maybe GM sees all electric vehicles without transmissions in the very near future (doubt it is that near) or they are making a mistake IMO.
      • 7 Years Ago
      You don't suppose this has anything to do with raising GM's corpoate fuel economy numbers, do you?
      • 7 Years Ago
      Navistar already makes a medium duty range of trucks. Daimler had bought Fords medium duty truck line and now calls it Sterlin. Ford is still making a F550/650 which is pushing the edge. Navistar also makes a Cab-Forward using the v6 diesel that Ford ordered then canceled for their F150. GM may do as Ford and introduce an extra heavy duty.

      Allison is a separate division and not part of the GM medium duty truck line.
      • 7 Years Ago
      "Except for Mack, big trucks are interchangeable."

      Class seven & eight are as you describe but under those GVWs, the choices are limited. Drive train options are even becoming less of an option.
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