With the downturn of the truck market and the overall budget cuts at General Motors, GM’s medium-duty truck business has not been feeling a lot of love as of late. In fact, GM’s medium-duty truck business hasn’t been feeling a lot of love from anybody, with Navistar backing out of its deal to acquire the business from GM just last month. But it looks as though business could be on the rebound as GM appears to have found a new suitor.
According to Automotive News, GM is currently in talks with Japan’s Isuzu to sell its medium-duty truck operation. Although Isuzu has yet to confirm the report, Japan’s number two truck maker looks to be in the prime position to acquire the business from GM.
If the deal does go through, Isuzu will be responsible for producing the trucks’ chassis and frames, as well as assembly. However, the trucks – currently produced as the Chevrolet Kodiak and GMC TopKick – would likely retain their GM nameplates.
The deal will also likely see Isuzu raising its stake in DMAX, a joint-venture setup between the two companies to produce diesel engines in Ohio. Isuzu currently holds a 40 percent stake with GM retaining the other 60 percent.
No word on the final value of the deal, but the deal could be inked by the end of 2008.
