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Old 12-30-2007, 04:12 PM   #1
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RPierce
Navistar buys General Motors

Thought the group might be interested in reading this. I know its their Commercial truck line that they bought, but it may affect our pickup Diesels down the road. As the article states Ford and IH are still having unresolved issues and their contract is up in 2012. They even mention the future of the Duramax in the GM line. Don't know if they are referring to the commercial truck line or the entire GM line.

Navistar to Buy GM's Commercial Truck Business

Navistar International Corp. on Dec. 20 agreed to buy the assets and distribution rights for General Motors Corp.'s medium-duty commercial truck business.

The announcement came less than two months after Daniel Ustian, Navistar's chairman, president and chief executive officer, publicly confirmed that discussions between the two truck manufacturers were under way.

LIGHT & MEDIUM TRUCK reported last March that GM was considering selling its commercial truck business.

Under the proposed agreement, Navistar would buy GM's commercial truck business, including the Chevrolet Kodiak/GMC TopKick truck brands, and the T-Series cab-over trucks. Navistar would manufacture, design and market the trucks to GM dealers, Dave Tarrant, managing director of commercial truck strategy for Navistar, said during a telephone press conference.

The companies did not disclose exact terms of the proposal.

GM would continue to market the smaller W-Series low-cab-forward trucks built for the company by Isuzu in Japan and Janesville, Wis.

GM and International Truck and Engine Corp., Navistar's operating arm, reported selling a combined 68,743 trucks in Classes 4-7 through the first 11 months of 2007, according to data from WardsAuto.com. Their combined market share of 34% would displace Ford Motor Co. as the top seller of trucks in those classes.

[The sale would] "position GM for sustained profit and growth" and enable the company to focus on its core business, "designing and building cars and light trucks," said John Gaydash, marketing director for GM's fleet and commercial operations.

The Chevrolet and GMC commercial product lines would remain separate and competitive with Navistar's trucks, Tarrant said.

The sale would have no effect on GM dealers, Gaydash said.

"Once [the sale] is finalized, the transition should be gradual and seamless to customers," Tarrant said.

The deal is expected to close in 2008 subject to negotiation of a definitive purchase agreement, regulatory clearance and board approval, and then the transition could take several months, Navistar said.

Navistar would build the GM products, currently assembled at Flint, Mich., at a yet-to-be-determined facility, officials said.

While officials would not directly address the issue during the press conference, Navistar could benefit by having a captive fall-back customer for its V-8 diesel engine if it can not mend fences with Ford Motor Co.

International supplies the diesel engines Ford uses in all of its Super Duty Class 3-5 trucks. That amounted to about 225,000 units in 2006, according to Ford.

"The Ford deal is a joint venture for engine and manufacturing services," Tarrant said. "It differs from this deal in that we don't own the Ford business, we just supply it. In this case, we own and operate the business."

The two long-term partners sued each other earlier this year over costs and warranty issues with the engines. Their contract runs to 2012. The dispute has not been settled.

GM currently uses the Duramax V-8 diesel in its medium-duty trucks. Although Gaydash said the GM trucks would continue to use the Duramax engine "in the foreseeable future," the agreement seemed to leave the door open to put the International-built diesels into the trucks. The Duramax is built in Moraine, Ohio.

"We expect to use International engines across all of our products, but how will be determined as we go forward," Tarrant said. - Daniel P. Bearth, Jim Galligan
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Old 12-31-2007, 08:24 AM   #2
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If the Navistar motor goes into the GM one ton truck line, In my opinion, that would be a major mistake on GM's part. They have a winning combination right now with the Duramax/Allison option. "Darn near bulletproof" I have been told by more than one mechanic. If I had the resources, I would be driving a D/A right now.

As most of you know from my previous posts, I drive a Navistar product for a living. I don't call it my "toilet" to be funny. In my over twenty years of driving professionally, the International brand has been the worst brand of medium duty truck for quality and reliability. I just hope that they do not carry that history over into the GM line. Could this be another example of $$ over ruling quality? We will have to wait and see.

I am not trying to start an online bragging match about whose product is better than others. All I am saying is through my experience that another fine product could be going down the tubes. I apologize if I have ruffled any ones feathers.

Just another thought. Could this be tied into the introduction of GM's new smaller diesel in the near future?

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Old 12-31-2007, 06:15 PM   #3
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I have been following a thread on firehouse and there are some that feel Ford is going to partner up with Cat for a new engine. There was also a post that Ford had been doing their own RD on a new engine and thus the reason they are fighting with Navistar.

I too hope we don't loose the D/A line. Guess we will have to wait and see what happens.
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Old 01-01-2008, 07:04 AM   #4
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I wouldn't be surprised to see Ford and Caterpillar hook up.

Our Sterling trucks (prettied up Fords) at work are running CAT motors.

The only decent thing about the trucks ARE the motors though- the electrical systems are junk, rears blow constantly, and they're just too fragile. I guess it may help reliability that the leasing co. we use turns down the power though. They don't break, but some of them are dogs.
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