The Auto Writer

When it comes to trucks, General Motors is one of the largest manufacturers of these types of vehicles in the world. From the compact light duty GMC Canyon to the medium duty Chevrolet Kodiak, trucks wearing either the GMC or Chevrolet badge can be found plying America’s highways and byways.

Medium Duty Truck Line: Selling To Isuzu?

Now, word is coming out that GM may be looking to sell off its medium duty truck line which includes the T-Series, W-Series, as well as the beefy Topkick/Kodiak. These trucks serve a number of purposes from hauling farm supplies to carrying refrigerated goods to moving construction site debris. Retailing from $27,000 to $83,000, the medium duty truck line represents the largest vehicles produced by General Motors.

The buyer who may be interested in purchasing GM’s medium duty line is none other than Isuzu, the Japanese auto manufacturer whom GM at one time held a 49% stake in. Until very recently, GM also supplied light duty trucks to Isuzu to sell stateside, a relationship that is now coming to an end. Both companies have collaborated on a number of projects down through the years with Isuzu supplying GM with diesel technology as well as the platforms underpinning the W-Series and T-Series.

Separating Medium Duty Trucks From Light Duty Trucks

Untangling medium duty Chevrolet and GMC trucks from the GM portfolio could be a difficult thing to do, given that the vehicles are sold through hundreds of dealerships across the US, including some that also sell light duty trucks. But, GM could do the same that they did when they purchased Saab (and Ford with Volvo) by selling off its medium truck line while allowing Isuzu to use the GMC name. In addition, the two companies could share one or more production facilities including GM’s Tonawanda, NY engine plant which builds automotive, marine, and truck engines.

General Motors has been examining its entire portfolio lately to see which brands they might sell and which ones will survive. GM has been losing tens of billions of dollars and feeling the impact of a declining domestic market share over the past few years and has been actively shopping its Hummer brand since the summer. GM needs billions of dollars to pay for upcoming product development which will include the release of its plug-in hybrid, the Chevrolet Volt.

Concerning GM’s medium duty truck line, Isuzu says that they haven’t been contacted yet by General Motors with a proposal, but they would study the offer once it has been submitted to them.

(Source: Reuters)