General Motors Company (NYSE:GM) To Partner With Navistar (NAV) To Build Medium-Duty’ Trucks, A Business It Exited In 2009
General Motors Company (NYSE:GM) is returning to the medium-duty trucks business nearly six years after it exited the scene, industry sources indicate. The company is reportedly working out a deal with Navistar International Corp (NYSE:NAV) to produce the medium-duty trucks.
General Motors abandoned the medium-duty trucks business at the height of the recession in 2009. The company has been able to greatly reorganize itself and can take up new challenges.
General Motors Company (NYSE:GM) isn’t currently willing to confirm or deny that it has reached out to Navistar for truck production. A company spokesman said that there is currently no information to share on the issues of returning to the medium-duty trucks business.
Deal with Isuzu
If General Motors Company (NYSE:GM) indeed works out a deal with Navistar for medium-duty trucks, it would be on top of the one it signed with Isuzu. GM and Isuzu announced a venture to develop a special medium-duty truck configuration where the driver sits over the engine. The models that Isuzu builds position the driver behind the engine.
Navistar and the Big Two
Navistar has had a considerably long history working with both General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F).
Just last year, Navistar and Ford ended their so-called Blue Diamond venture. Through Blue Diamond, the companies produced medium-duty trucks sold through Ford’s commercial trucks channel.
After ending the relationship with Navistar, Ford will embark on in-house medium truck production.
Demand for commercial trucks
The strengthening U.S. economy has accelerated demand for commercial trucks. General Motors Company (NYSE:GM) believes it can boost its income returning to medium-duty trucks. The company has been able to put behind it most of the legacy issues from the recession and looks fit to compete in the medium-duty trucks scene again.
GM in electric car business
General Motors Company (NYSE:GM) also has an interest in electric engines. The company has promised a mass market electric car that would possible give Tesla Motors Inc (NASDAQ:TSLA) a run for its money. Tesla is also working on a mass market targeted electric car model called Model 3.
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