GM In Talks To Sell Truck Business To Isuzu

[doh]

GM May Sell Truck Business to Isuzu

General Motors (GM Quote - Cramer on GM - Stock Picks) is in talks to sell its commercial truck operations to Japan's Isuzu Motors, according to a media report Friday.

Nikkei Net Interactive reports the deal, if realized, would represent the first acquisition by a Japanese carmaker of a U.S. Big Three automaker's business.

GM was expected to sell its midsize-truck operations for several tens of billion of yen. Isuzu has told GM it would consider an offer positively, according to the report.

http://www.thestreet.com/_yahoo/news...FREE&cm_ite=NA

[xPUMPx]

any ideas on how much this actually encompasses? i dont know what they actually do for sales and such

[Gallon of Fuel]

The medium-duty truck line pretty much encompasses the Kodiak and Topkick series, and their associated variations. I believe that's all it would touch, but I still don't see this as a great idea. There's only GM and the Ford Superduty in this arena, and I'm pretty sure they're self-sustaining. Selling this part would only generate temporary liquid assets.

[doh]

Originally Posted by Gallon of Fuel

The medium-duty truck line pretty much encompasses the Kodiak and Topkick series, and their associated variations. I believe that's all it would touch, but I still don't see this as a great idea. There's only GM and the Ford Superduty in this arena, and I'm pretty sure they're self-sustaining. Selling this part would only generate temporary liquid assets.

There is also the T Series and W series which Isuzu already builds for GM. I said long ago that Isuzu was a logical buyer for the medium duty line. I bet 90% of the current Medium Duty dealer would sign on with Isuzu, Isuzu already supplies the engines in the 4500/5500 line and an option in the 6500-8500 Topkick.

There is way more players in the arena, International, Freightliner, Mack, Kenworth, and Mitsu all play in it.

[doh]

here is more http://www.reuters.com/article/marke...BrandChannel=0

TOKYO, Sept 19 (Reuters) - General Motors Corp is in talks to sell its midsize-truck operations to Isuzu Motors, a newspaper reported, but Japan's No. 2 truck maker said it had received no such offer.

Shares in Isuzu, a former GM affiliate, extended gains to end up 11 percent after the report.

GM was expected to sell its midsize-truck operations, which constitutes most of its truck business, for several tens of billion of yen and Isuzu has told the U.S. automaker it would consider an offer positively, the Nikkei business daily said.

It was unclear whether GM would sell all of its operations or retain a Michigan plant, the paper said.

But Isuzu spokeswoman Yukiko Okazaki said GM had not contacted the company about such a deal. "We will begin studying an offer if we receive one," she said.

Last month, Navistar International Corp said a tentative agreement struck late last year to buy GM's medium-duty truck business had expired without a deal due to significant marketplace and economic changes.

If GM were to sell its truck operations to Isuzu, it would be an ironic turn of events as GM has in the past extended lifelines to the Japanese truck maker in which it once held as much as 49 percent after first taking 34 percent in 1971.

GM has lost more than $51 billion in the past three years and has been further hurt by the recent downturn in U.S. auto sales. It has said it will try to raise up to $4 billion through asset sales and has put its Hummer division up for sale.

The Nikkei also said Isuzu might also raise its stake in DMAX Ltd., a diesel-engine joint venture in Ohio, from a current 40 percent. GM holds the remaining 60 percent.

Isuzu's Okazaki said the two firms were not considering changes to DMAX's ownership.

[TuffG929]

So, would this mean that sometime in the not too distant future, Toyota could own GMs truck operations?

[Canyonaro]

Oh yeah....I like this idea.....

Although I like and appreciate Isuzu, this is a bad idea if it were true.

[nadepalma]

Another article here: http://www.autonews.com/article/2008...309194632/1128

[Caleb02]

toyuzu would be a good purchase all of america and its companies as the stock market has dropped about 1000 points and a depression even worse then the one in the 1930's.

[mgescuro]

I'm not sure how I feel about this move....

[johnny smallblock]

Medium duty isn't core to GM's business. They need the money and fewer distractions. If selling the medium duties lets them make a better Impala or Cobalt or Cruze or Volt, then all the better.

[member12]

GM sure seems to own this market in the Atlanta area.....I don't understand how they can't make money on such high margin vehicles like this.


I don't think they should sell it if that is the case.

[lio45]

Everything in GM's medium-duty lineup except the Kodiak/Topkick is already 100% Isuzu, so that's not a big deal.

It's akin to GM spinning off/selling its Pontiac Vibe operations (manufacture, sales, service, etc. of that car) to Toyota.

[Bvonscott]

As long as toyoda doesnt get their dirty hands on any GM technology I'm ok with it.

And Japan inc will never own GM's half ton truck line. Not in a billion years.

[bangstudios]

Originally Posted by Bvonscott

As long as toyoda doesnt get their dirty hands on any GM technology I'm ok with it.

And Japan inc will never own GM's half ton truck line. Not in a billion years.

Given how poorly my '07 (new style) Silverado Z71 was screwed together (yup, the shine faded from that purchase quite quickly), putting the 1/2 ton business in someone else's hands might not be such a bad idea. A handful of months in, and I'm about to trade the Silverado off: I'm going with an '09 Ram this time. It can't be any worse than brakes that won't stop squealing (with the dealer stating that "this is normal when the temperature approaches +10 C"), the driver's door gradually neglecting to line up with the rest of the body, a drivetrain that now waits close to two and a half seconds to react to a dramatic throttle input and anti-lock brakes that don't anti-lock. Blech!