Navistar and GM???
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Senior User
Joined: Jul 2006
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Navistar and GM???
Has anybody posted this yet?
Source: GM talking with Navistar on medium-duty truck unit
Reuters |
May 16, 2007 - 3:00 pm
UPDATED: 5/16/07 4:42 P.M.
DETROIT (Reuters) -- General Motors is in talks with Navistar International Corp. to sell its medium-duty truck unit to the truck and engine maker, a source familiar with the talks said today.
The talks are in the early stages, the source said.
GM and Navistar declined comment.
"This would improve capacity utilization at both GM and Navistar, plus remove an industry competitor for Navistar," Bear Stearns analyst Peter Nesvold wrote in a research note. "It'd be a positive for both companies."
GM sells the medium-duty trucks under the nameplates Kodiak, TopKick and Isuzu T-Series. The automaker made 59,000 medium-duty trucks in 2006, representing nearly 12 percent of the market.
The move would be consistent with GM's strategy as it tries to recover from billions of dollars in losses and focus more on its core business of making cars and sport utility vehicles.
GM, which is in the middle of a sweeping restructuring that includes cutting costs by slashing more than 34,000 factory jobs, is also in talks with suitors to sell Allison Transmissions, which makes transmissions systems for commercial trucks, buses and military vehicles.
Navistar, the exclusive supplier of diesel engines to Ford Motor Co.'s Super Duty pickups since 1979, is locked in a legal battle with the automaker.
The supplier is currently seeking damages of more than $2 billion from Ford, prompted by indications that Ford was planning to develop diesel engines of its own for introduction prior to 2012.
The counter-claim is the latest twist in a contract dispute that begin in January, when Ford sued Navistar over warranty costs and engine prices related to the contract for the F series, the most popular vehicles in their class.
"We think there could be an opportunity for Navistar to sell larger displacement engines into GM eventually," Nesvold said.
"Such a deal could help Navistar plan for 'life after Ford,' should that relationship sour further," he added.
Source: GM talking with Navistar on medium-duty truck unit
Reuters |
May 16, 2007 - 3:00 pm
UPDATED: 5/16/07 4:42 P.M.
DETROIT (Reuters) -- General Motors is in talks with Navistar International Corp. to sell its medium-duty truck unit to the truck and engine maker, a source familiar with the talks said today.
The talks are in the early stages, the source said.
GM and Navistar declined comment.
"This would improve capacity utilization at both GM and Navistar, plus remove an industry competitor for Navistar," Bear Stearns analyst Peter Nesvold wrote in a research note. "It'd be a positive for both companies."
GM sells the medium-duty trucks under the nameplates Kodiak, TopKick and Isuzu T-Series. The automaker made 59,000 medium-duty trucks in 2006, representing nearly 12 percent of the market.
The move would be consistent with GM's strategy as it tries to recover from billions of dollars in losses and focus more on its core business of making cars and sport utility vehicles.
GM, which is in the middle of a sweeping restructuring that includes cutting costs by slashing more than 34,000 factory jobs, is also in talks with suitors to sell Allison Transmissions, which makes transmissions systems for commercial trucks, buses and military vehicles.
Navistar, the exclusive supplier of diesel engines to Ford Motor Co.'s Super Duty pickups since 1979, is locked in a legal battle with the automaker.
The supplier is currently seeking damages of more than $2 billion from Ford, prompted by indications that Ford was planning to develop diesel engines of its own for introduction prior to 2012.
The counter-claim is the latest twist in a contract dispute that begin in January, when Ford sued Navistar over warranty costs and engine prices related to the contract for the F series, the most popular vehicles in their class.
"We think there could be an opportunity for Navistar to sell larger displacement engines into GM eventually," Nesvold said.
"Such a deal could help Navistar plan for 'life after Ford,' should that relationship sour further," he added.
Senior User
Joined: Apr 2007
Posts: 344
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From: Texas
got that right they can have em' hey if international can't treat ford right after nearly 30 years of business then how then hell can GM expect any better. yes i do know the 6.0 wasn't ALL their fault but from what i hear from international mechanics also is that they were also having problems with the engines
Lead Driver
Joined: Feb 2003
Posts: 8,140
Likes: 4
From: Oak Harbor, OH
I honestly think it'll be good. I really don't see why navistar got all upset at ford for developing an in-house diesel. They've needed to for a long time. Sure the contract may not be up until 2012, but if they make a nice diesel with a ford logo on it and offer it as an OPTION navistar shouldn't have a problem. I also think that ford was covering their butts if the lawsuit fell out and ford told them to go **** up a rope.
Posting Guru
Joined: Jan 2007
Posts: 1,147
Likes: 0
From: Coweta,GA, GO DAWGS!!!!!!
The dt466e is the absolute "best"..............that's right best, medium duty power plant on the market today. Take a look around and tell me, how many medium duty trucks you see in a days time on the highways are internationals? They own the med market and they own it because of the 466 engine. Not too shabby is the 530,vt365, and many of the larger engines in the dt family. Everything has it's problems...it's only machine and mechanics.
Elder User
Joined: Aug 2006
Posts: 870
Likes: 0
From: Mountaintop, PA
The isuzu diesel in the GM's have got to be much cheaper than anything that can be built in the U.S. I do not see GM becoming willing to take a hit on engine production costs. I am only refering to the fact that foriegn built car's are produced and sold for less than the big three can keep up with.
