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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.
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 th
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.
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.
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 im