General Motors Company (NYSE:GM) To Partner With Navistar (NAV) To Build Medium-Duty’ Trucks, A Business It Exited In 2009

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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.

No comment

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.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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