GM, Navistar Partner to Build Commercial Trucks

In an aggressive play to further penetrate the commercial truck marketplace, GM and Navistar International Corp. have entered into a long-term partnership agreement to produce medium-duty Class 4 and 5 trucks.

GM walked away from the medium-duty segment in 2009 when it killed the Chevrolet Kodiak and GMC TopKick work trucks, but it has reconsidered and teamed up with longtime chassis and engine builder Navistar. Ford partnered with Navistar on the two-generations-ago Super Duty lineup, but had problems with the Navistar-built 6.0-liter V-8 Power Stroke. Ford eventually severed its relationship with Navistar and moved Super Duty powertrain responsibilities in house.

A joint press release reports that Navistar will add as many as 300 jobs and invest more than $12 million in new equipment and facility upgrades to produce the new trucks. GM has not announced what investments it will make.

According to Automotive News, Navistar has struggled to keep top executives and improve cash flow due to previous issues regarding emissions compliance and technology strategies on some of its heavy-duty engines.

Production of GM's new commercial duty truck is scheduled to begin in 2018; early reports say Navistar will be responsible for the rolling chassis and GM will supply the commercial components and engines.

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