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General Motors and Navistar to Collaborate on Medium-Duty Vehicle

Truck Trend logo Truck Trend 2015-10-01 Brett T. Evans
General Motors and Navistar to Collaborate on Medium-Duty Vehicle

General Motors and Navistar have reached an agreement to jointly develop and build a future medium-duty truck. The Class 4/5 commercial vehicle will have a conventional cab, allowing GM to expand its commercial portfolio. The agreement comes a few months after GM and Isuzu entered into a partnership on a low-cab-forward medium-duty truck based on the Isuzu N-Series chassis.

So what does Navistar get out of this deal? Well, higher volumes would be a start. The trucks could be badged as Chevrolets in addition to the company’s native International brand. But Navi will also get access to GM’s reserves of intel as an engine and component supplier, endowing the commercial-vehicle company with more resources, less expensive parts, and higher profit margins.

The commercial trucks, which will be built at Navistar’s Ohio facility, should arrive on the market by 2018. The company plans to invest $12 million in upgrades and add 300 jobs to the Ohio plant to prepare for the new trucks.

Specific terms of the agreement and vehicle specifications were not discussed. However, GM’s widespread brand recognition and Navistar’s experience across the breadth of the commercial vehicle segment should make for a beneficial partnership for both companies.

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Source: General Motors

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