Navistar-GM medium-duty takeover talks heat up

SPRINGFIELD, Ohio — The rumored sale of GM’s medium-duty truck lineup to Navistar International could get done by the end of this month, local media reports.

According to the Springfield News-Sun, politicians close to Navistar’s Springfield, Ohio assembly plant seem to think it’s just a matter of time before Navistar buys the GM product line, based in Flint, Mich., and moves production to Springfield.

Greater Springfield Chamber of Commerce President Mike McDorman told the paper “we are close to an announcement that will be positive” (for the local economy). Meanwhile, State Rep. Chris Widener, said that he’s confident there will be an announcement in July regarding the sale.

It was first reported in May that GM was considering selling the business to Navistar. Both companies have since declined to comment on the reports.

GM, which is looking to focus on just cars and light trucks, has a modest slice of the medium-duty truck market with its Kodiak, TopKick and Isuzu T-Series brands.

Navistar’s International Truck & Engine is the North American market share leader in class 5 to 7 trucks, making it a logical fit for GM’s MD portfolio.

The company may also be looking ahead to “life after Ford.” Navistar has been entangled in a bitter court battle with its longtime partner overt he sale and supply of Navistar’s Power Stroke diesel engines for Ford’s F-series trucks.

One New York-based transportation analyst wrote this morning that if the sale goes through, it’s unlikely Navistar would replace the Duramax diesel with its own 6.4 liter engine. However, says Bear Stearns, there could be an opportunity for Navistar to sell larger displacement engines into GM eventually.

About 600 UAW workers at GM’s Flint plant would likely be absorbed into other facilities; while Navistar’s Springfield plant could soon see 800 extra jobs.

— with files from the Springfield News-Sun


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