GM and Navistar struck a tentative agreement on the business back in December, with GM eager to shed the unit it deemed noncore to its efforts to focus on smaller cars and Navistar hopeful of building scale in its existing truck business. The companies said Wednesday that a memorandum of understanding had expired and it would not be renewed.
The deal is not completely dead. GM said in its statement it would continue to review strategic options for the business, including continued discussions with Navistar.
GM, which earlier this month posted a $15.5 billion quarterly loss and warned inveators of further red ink, is looking to raise upwards of $5 billion via divestitures and new borrowings to help it weather the current downturn. - Lou Whiteman
See GM press release
See TheDeal.com story on GM and Navistar signing an agreement
See TheDeal.com story on GM's earnings
See Dealwatch: Autos
General Motors Corp. dropped Wednesday plans to sell its medium-duty truck business to Navistar International Corp. due to economic woes that have slowed the unit's sales.
