BusTalk

Mr. Linsky

Update on the purchase of the GMC/Chevrolet medium truck divisions;

As of this writing, the deal has just about closed and the winner is 'Navistar' more familiarly known as International Harvester and one of the lone survivors in American truck manufacturing.

Navistar is purchasing the divisions including the related service parts business, the intellectual property rights to manufacture GMC and Chevrolet models in the class 4 8 gross weight range and the rights to sell the vehicles through GM's proprietary dealer network.

The major models involved will be the GMC 'Top Kick' and the Chevrolet 'Kodiak' both being long time favorites in the utility industry.

Production will be moved out of Flint Michigan to a new plant the location of which remains undisclosed at this time.

From my standpoint of view, this is a win/win situation for GM in the sense that the trucks will still be manufactured under their name and sold by their dealers - all of this without the headaches usually associated with making and selling - who could ask for anything more?

However, it was pointed out in The New York Times article in which this story appeared that it was Navistar's goal to knock out their staunch competitor in the field so there really is no telling how long they will retain the GM nameplates.

As far as I'm concerned this is just one more branch that has fallen from the GM family tree and can be summed up by the following (and you know the tune); 'whoops, there goes another rubber tree plant'!

Mr. Linsky - Green Bus Lines, Inc., Jamaica, NY

ripta42 · Posted: Tue Dec 25, 2007 11:45 am Post subject:

It's also bad news for the workers; Navistar operates non-union engine plants in Alabama, Texas, Mississippi, and Mexico, and outsources some production work to India.

Mr. Linsky · Posted: Tue Dec 25, 2007 1:41 pm Post subject:

Michael,

It was also mentioned in the article that GM will use the Flint plant for production of other models so it may be that the jobs might be saved.

Obviously the UAW is looking out for the interests of their membership and certainly had some input in the final decision.

BTW; does the Navistar/South Asia connection mean that when your horn on an International truck doesn't work you have to call 'tech support' in India? (only a joke).

Mr. Linsky - Green Bus Lines, Inc., Jamaica, NY