GM And Navistar Reach Agreement To Develop Medium-Duty Trucks
Well, the rumors proved true – General Motors and Navistar have reached an agreement to co-develop and assemble Class 4 and 5 medium-duty, commercial trucks. This marks the first time GM has been present in the medium-duty segment since its departure in 2009. Back then, the automaker ended production of its Chevrolet Kodiak and GMC Topkick trucks thanks to the slowing global economy.
Ed Peper, U.S. vice president of GM Fleet and Commercial sales said this about the endeavor: “Bringing medium-duty conventional cab trucks back into the portfolio strengthens Chevrolet’s commitment to providing commercial customers with more choices and one-stop shopping for a versatile lineup of trucks, vans, and crossovers.”
Though GM did not give any specifics on the future trucks, we know GM will provide many of the components of the truck, including the engines, while Navistar will concentrate on the chassis and manufacturing aspects. The trucks are slated to be built in Navistar’s Springfield, Ohio assembly plant.
Navistar says it will add 300 jobs and invest more than $12 million to prepare the facility for vehicle assembly.
“Our collaboration with GM is another example of our customer-centric, open integration approach – providing our customers with the best technologies available,” said Bill Kozek, president, Truck and Parts, Navistar. “By working with an industry-leading partner like GM, we’ll be able to enhance our medium-duty product portfolio and leverage our scale and expertise in manufacturing medium-duty trucks.”
No other information on the trucks was given, but GM says production will begin in 2018.
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Why it matters
Navistar’s Bill Kozek said it best: the company will be able to enhance its medium-duty products while leveraging its scale and expertise to make more trucks.
Simply put, more trucks equal more profits. This partnership certainly helps both parties involved. It saves GM loads of money by not having to develop 100 percent of the truck and not having to build assembly plants and manufacture the vehicles. Navistar on the other hand, gets a leg-up thanks to GM’s advanced powertrains and cab body building. It’s a win-win for everyone.
Read more about the Chevrolet Kodiak here.