General Motors and Navistar worldwide Corporation have come to a long haul consent to create medium-duty commercial trucks, preparing for the auto producer’s arrival to a segment it deserted six years back.
The deal will present to Navistar a few quite required production volume for its medium-duty truck business after the company finished a truck-making endeavor in Mexico with Ford Motor Co. prior this year.
“Navistar has a storied history in our community”, said Mike McDorman, president and CEO, Springfield Chamber of Commerce.
“By working with an industry-leading company like GM, we’ll be able to enhance our medium-duty product portfolio and leverage our scale and expertise in manufacturing medium-duty trucks”, Bill Kozek, president of truck and parts at Navistar, added.
Specific terms of the agreement were not disclosed and additional details about the new trucks will be announced later, the OEMs said. GM, at this time, has no plans to bring the Chevrolet version of the truck to Canada, but Navistar confirmed on a conference call today that its Canadian dealers will sell and support worldwide trucks developed under the partnership.
The company’s VP of fleet and commercial sales, Ed Peper said in a statement the move will help Chevrolet to offer more options and one-stop shopping to customers for a range of crossovers, trucks and vans. NAV’s warranty costs skyrocketed due to emissions-related debacle.
Earlier this month, Navistar posted its 12th consecutive quarterly loss, but executives said ongoing restructuring actions would help the company become profitable and have positive cash flow in 2016. The 52-week range of the stock is $12.34 to $38.05. GM shares were up almost 1.4 percent at $29.55. GM shares have plummeted about 15 percent so far this year.