GM to sell medium-duty truck business to Isuzu?
As General Motors seeks to streamline its production, the auto giant's medium-duty truck business is back on the block. This past summer a deal with Navistar fell through, leaving GM holding its hat, but a new deal could see the line transfer to Isuzu.
The Japanese automaker, which was due to withdraw from passenger car sales in North American as of a couple of days ago, is one of the world's largest producers of medium- and heavy-duty trucks and has had a long history of collaboration with GM. The new arrangement, which was previously rejected, would have Isuzu take over production of the GMC TopKick and Chevrolet Kodiak trucks, also rebadged as the Isuzu H-Series (pictured above), currently produced alongside the GMC Sierra and Chevy Silverado pick-ups at GM's Flint, Michigan truck plant. The deal is far from finalized, with Isuzu spokesmen apparently unaware of the negotiations reportedly in progress, but UAW officials say this could be the best way to keep its truck assembly workers employed.
[Source: Michigan Online]
Get a WordPress.com Blog
Reader Comments (Page 1 of 1)
CarbonBlack 5:54PM (2/02/2009)
Makes sense to me!
Reply
Al 6:14PM (2/02/2009)
Even if they were to make the best trucks in the world, it seems that Isuzu's greatest detractor is its name. Particularly when it comes to selling products with as much nationalistic prejudice as trucks.
Reply
VP 6:34PM (2/02/2009)
If they aren't many local options left i am sure even the most loyal nationalists would have to buy something "international".
Nude Love 6:58PM (2/04/2009)
Well, to be fair, foreign trucks generally aren't that great...
Judy Zik 7:24PM (2/02/2009)
You are of course assuming that they wont continue to sell them rebadged versions as GMCs and Chevys. Why not. It helps their image to continue to have a full line of trucks.
Patrick 10:48PM (2/02/2009)
Medium duty and box trucks are more fleet driven purchases and probably less emotionally-based than pickup buying.
alex 1:23AM (2/03/2009)
Under the deal with navistar, the trucks would have retained the GMC Topkick and Chevy Kodiak names (kind of like how Volvo trucks and Volvo cars are made by different companies). The same could possibly apply here
Sea Urchin 7:19PM (2/02/2009)
Little by little GM sold most of its assets. The company is basically liquidating.
Reply
jo sly 7:26PM (2/02/2009)
Since Transformers was a "GM commercial" as some haters said, does that mean if the Topkick goes to Isuzu,that Ironhide is gonna get a pink slip? (Bring back Jazz!)
Reply
Torradas 7:49PM (2/02/2009)
Is that a front whell drive truck?!
I see the front tires spinning and the rear tires stuck :P
And it is incredible how it can corner without even roll?! A great contender to the Edo Enzo huh?!
LOL!!!!
Reply
socarboy99 8:12PM (2/02/2009)
Too bad Isuzu and GM didn't have the forsight to offer
vehicles made by the other GM partner, Daewoo, marketed
in the US under Isuzu names, but being vehicles such as
Forenza and Verona, but featuring an Isuzu diesel powerplant! Isuzu builds a very good diesel engine. GM, Isuzu, and Daewoo all missed the boat on this one. If they
would have done this, in 2003 when Daewoo went belly up, they would have probably had a cult car on their hands by now!
Reply
Jay 9:24PM (2/02/2009)
Yeah a "cult car" not a car that makes money. People in the US still aren't sufficiently warmed up to diesel, and it would've been an even harder sell years ago, when diesels weren't as refined or clean.
UltimoDragon 1:05AM (2/03/2009)
Selling an asset for much needed cash, and keeping American workers employed doing it. A can't lose situation if they can pull it off.
Reply
TomdeTomTom 1:29AM (2/03/2009)
Well said. Go Izuzu.
1337 1:22AM (2/03/2009)
Given Isuzu's history of retiring the dismal Rodeo in favor of the lackluster TrailBlazer (err, Ascender), then giving up on the American market all together, I'm sure GM's truck division in good hands.
Reply
Judgeman 9:45AM (2/03/2009)
As a dealer for both GM and Isuzu, this deal makes complete sense.Don't confuse Isuzu cars with Isuzu trucks. Isuzu is the most respected manufacturer in the industry. They currently hold close to 80% market share. The difference between how GM and Isuzu run their truck operations is night and day. This is a perfect match. If GM had done this two years ago they could have gotten decent money. Now, they're in dire straits and Isuzu knows it. They'll get the division for pennies on the dollar. That's illustrative of the way these two companies are run.
Reply
Richard S. 1:54PM (2/03/2009)
Isuzu will eventually be absorbed by Toyota and Toyota will then have an opening to sell these medium-duty trucks under their own names. Hmm, branding these a Toyota with their good reputation, will bring more sales to their brand than possibly Chevy or GMC, especially if Toyota uses their better financial position than GM to offer better incentives to move their own brand.
Eventually this could be the end of GM in the medium-duty and Toyota supremacy.
Bad move by GM unless they have a say on transfer in case of change of ownership of Isuzu.
Reply
Judgeman 2:20PM (2/03/2009)
Toyota? Toyota already a medium duty truck operation under the Hino name. They've gotten their asses handed to the every year by Isuzu. There is some opportunity to work together on engines but thats it. Toyota is learning a hard lesson on ehat happens when you take your eye off of long term plans. How much money did they waste in the revamp and relaunch of the "New Tundra"? How'd that work out?
Made in USA 12:20AM (2/15/2009)
GM does not keep financials on the medium truck unit - just like their former EMD operations. They do not know what they have in this division, however it is a small margin unit - so sell it. Every city snow plow, municipal electric line truck, railroad MOW truck, and Schwan's delivery truck in my neck of the woods seems to be a GMC. My municipality buys new trucks every 2-3 years. How many readers here can afford to do that over a lifetime? This type of operation diversifies GM away from the individual consumer. Yes, GM is losing money today, but I would think that someone in the company is thinking about tommorrow. Ever heard of not putting your eggs all in one basket?
Reply