For the past four years, General Motors has been trying to sell its medium duty truck business, which produces the giant Chevy Kodiak and GMC Topkick. Navistar, Isuzu and other unnamed suitors were all at one point in discussions with GM to make a deal, but none ever happened and today the automaker announced that it would will "wind down" production of the Kodiak and Topkick and cease production altogether on July 31st.

In addition to the consumer-oriented models from Chevy and GMC, the medium duty truck operations also produced the commercial grade C4500, C5500 and C6500 models. Halfway between a full-ton pickup and an actual semi, these mammoth haulers were best suited for just that: towing. Chances are if you ever saw one on the road, there was a trailer behind it.

The Topkick also earned acclaim for its acting prowess in the Transformers film franchise playing the Autobots' weapons specialist, Ironhide. Unfortunately, success on celluloid didn't transfer to sales on the street, and it looks like Ironhide may be taking his last curtain call in Transformers 2: Revenge of the Fallen.



[Source: GM]

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]

It must be pretty hard to unload an unwanted truck business these days. Just ask General Motors, which has attempted to sell its medium-duty truck operations first to Navistar and then Isuzu. Both heavy-duty diesel makers have passed on the offer. Isuzu had been rumored as a possible buyer for the unit after Navistar let the non-binding agreement pass by unsigned. Now, Isuzu President Susumu Hosoi tells Reuters, "There will be no such acquisition happening" from his company either, suggesting that the market for heavy-duty trucks has not yet hit the bottom.

GM and Isuzu still have dealings together as the two companies jointly develop and build the Duramax engines that power the General's most powerful full-size trucks, SUVs and vans. This cooperation is expected to continue on as it has with neither Isuzu or GM buying out the other to gain full control of the operations.

[Source: Reuters]

Reports are coming in that the General is considering selling its medium truck operations to Isuzu. This news is totally unconfirmed by both parties, though Isuzu says it would be more than willing to listen if GM felt the desire to talk.

All of this comes shortly after Navistar chose not to follow through on its non-binding agreement to purchase the commercial truck unit from General Motors after seeing what's been happening with the U.S. economy and gas prices. After that deal went sour, GM said that it would continue looking for options, so this particular piece of the rumormill pie is anything but surprising. We contacted GM to see if the automaker had anything to say regarding the hubbub, and, as expected, it's staying tight-lipped for the time being. An Isuzu tie-up makes some sense, as the two truck makers have had dealings together in the past, most notably in the design of GM's current mid-sized trucks, the Chevy Colorado and GMC Canyon.

[Source: Forbes]

It's an epic poem that could have been written by Byron: you suffered a nasty breakup and met a new girl, you dated for a while, things were looking outstanding, you proposed... and then the bottom dropped out of the medium-duty truck business. We've seen it all before. And now that it's happened, Navistar has backed away from it's non-binding commitment to purchase GM's medium-duty truck operations.

GM and Navistar only had a memorandum of understanding, so there appears to be no harm, no foul in Navistar getting icy feet. The brief announcement of the dissolution presents it as a mutual affair: "Due to significant marketplace and economic changes, GM and Navistar have decided not to renew the memorandum of understanding to purchase GM's medium duty truck business," but we imagine GM standing at the altar, watching its Navistar groom bolt from the church and hop in a taxi.>

GM is still talking to Navistar and looking at other ways to dump find a good home for its medium duty truck business. A shame, because they make some fine vehicles.

[Source: GM]

You may recall that Navistar supplies Ford with diesel engines for its Super Duty trucks. You may also recall that the last two diesel engines used in Ford's Super Duty pickups (the current 6.4L Power Stroke and last generation's 6.0L) have had some quality problems. The 6.0L Power Stroke was known for problems stemming from defective fuel injectors, while the newer 6.4L has had one recall related to high exhaust temperatures that could ignite diesel fuel in the particulate filter, causing an impressive light show out the tailpipe. Because of their strained relationship on account of these engines, Ford and Navistar are likely to part ways in the near future.

So what do you do when your biggest client dumps you? You walk across town and strike a deal with its competitor. General Motors announced this morning that it has entered into a "non-binding memorandum of understanding" (read: gentleman's handshake) with International Truck and Engine Corporation to sell its medium-duty truck business to the Navistar owned-and-operated subsidiary. Thus, Navistar will eventually take over building and selling the GMC TopKick and Chevy Kodiak trucks. That's right, while Ironhide will remain a GMC vehicle, he'll no longer be owned by GM.

To be fair, Navistar was undoubtedly forced to produce the last two Power Stroke diesels for Ford in a hurry to meet rising emissions standards, which likely contributed to the problems that both engines have had. Apparently that doesn't bother GM, as we expect the TopKick and Kodiak will likely eschew their Duramax turbodiesels for International diesel engines after the deal is done.

[Source: GM]