Navistar Reaches Tentative Agreement with GM to Purchase Medium-Duty Truck Business

In was announced today that GM and Navistar have reached a tentative agreement in which Navistar would would purchase certain assets, intellectual property and distribution rights for GM's medium-duty truck business. In the agreement, Navistart would manufacture GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range. It also includes purchase of the related service parts business. Navistar would be selling a competitive line of Chevrolet and GMC vehicles and service parts through GM's proprietary dealer network in the United States and Canada. This arrangement further allows GM to narrow their focus on the design, manufacture and selling of cars and light trucks. Navistar will be able to leverage thier commercial truck and engine strength and apply it to the GM medium duty truck line. Navistar would be adding the GMC TopKick and Chevrolet Kodiak truck brands to its current line which includes International brand trucks and tractors, IC brand buses, Workhorse brand chassis for motor homes and step vans, and MaxxForce brand engines.

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