The Detroit-based automaker is in talks to sell the operation to Japan's No. 2 truckmaker, according to a Friday Nikkei Net Interactive report. Terms of the potential deal were not disclosed, but the report said the business could be sold for several tens of billion of yen.
General Motors is looking to sell the business as part of its campaign to raise capital and restructure its business toward smaller, more fuel-efficient vehicles. The company announced a tentative agreement with Navistar back in December, but the two parties called off the deal in August due to economic woes that slowed the unit's sales.
It is unclear whether Isuzu, which was once minority owned by GM, would acquire the Michigan plant where GM currently manufactures the trucks. The company according to Nikkei could also raise its stake in Dmax Ltd., an Ohio-based diesel-engine joint venture currently 60% owned by GM, from its current 40%.
Many in the industry predict Navistar could still emerge as a buyer of the truck business, albeit at a lower price than the original terms, which were undisclosed. A deal would give Warrenville, Ill.-based Navistar much-needed scale in the truck business, adding vehicles including the GMC TopKick (pictured) and Chevrolet Kodiak to its portfolio. - Lou Whiteman
See Dealscape post on GM's deal with Navistar falling apart
See Isuzu report in Nikkei Net Interactive (subscription required)
See Dealwatch: Autos
Frustrated in its effort to sell its medium-duty truck business to Navistar International Corp., General Motors Corp. has apparently turned its attention to Isuzu Motors Ltd. in an attempt to find a buyer.
