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International to Buy GMs Medium-Duty Truck Business

Navistar would buy assets, intellectual property rights and distribution rights to manufacture GMC Chevrolet Class 4-8 gross vehicle weight range trucks. Also in the deal is purchase of related parts service business. Navistar will sell its Chevrolet and GMC line through GM’s proprietary dealer network in the US and Canada.

The vehicles to be purchased and sold by Navistar are GM’s TopKick and Chevrolet Kodiak truck brands. The company presently produces International brand commercial trucks, MaxxForce diesel engines, IC school and commercial buses and Workhorse chassis for motor homes and step vans, among a number of other products.

For its part, GMC will continue an existing medium-duty truck relationship with Isuzu in which it markets W-Series trucks through GM’s medium-duty dealer network.

“Navistar’s expertise in building International brand commercial trucks and its trackrecord in the medium-duty segment makes them an excellent choice to acquire and continue growing the business,” says Troy Clarke, president of GM North America. “We intend to work closely with Navistar to make this transition seamless to our dealers and customers.”

Expected to close this year, when the deal is finalized, production will move from GM’s Flint, MI plant to one to be determined by Navistar. GM will retain ownership of the Flint facility and continue to build other products there.

“This is another example of how we’re strategically growing our business for trucks, engines and parts, building scale and reducing costs,” says Daniel C. Ustian, Navistar’s chairman, president and CEO. “We are proud to incorporate the GM truck brands into our portfolio, and will utilize the scale to build on the success of both the International and GM product lines and their respective distribution networks.”

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