GM Medium Duty Truck Line Up For Grabs?

GMC TopKick

General Motors has only until February 17th to submit a report to the federal government, outlining what sort of progress the automaker has made as it restructures. GM, along with Chrysler LLC, both have to submit reports as part of the conditions for taking taxpayer money late December 2008.

By March 31st, GM (and Chrysler) will also have to demonstrate that they will be viable companies going forward or risk having the federal government call billions of dollars in loans. If the feds were to take that action, both automakers would likely be forced to file for bankruptcy.

Selling Off Assets

GM may have a solution that will quickly raise cash and that involves selling off of some its prized assets. We know that the automaker has been shopping Hummer and Saab for several months with no buyers in the wings and also has a production plant in France that they want to dispose of.

What many people aren’t aware of is that its medium-duty truck line which sells the Chevrolet Kodiak and GMC TopKick could also be sold with Isuzu apparently interested in buying it. Isuzu just shut down its domestic passenger operations on January 31st, while it still maintains its own commercial vehicle line and diesel production operation. GM and Isuzu have worked closely in these two areas for years, therefore the sale of the medium duty segment to Isuzu would be good fit for the Japanese automotive firm.

Isuzu To Purchase Medium Duty Line?

Reports surfaced in The Detroit News on Tuesday about the potential sale to Isuzu, a story which also revealed that a Flint, Michigan plant would be included in the deal. That plant employs 525 workers and produced 22,000 units in 2008 for GM.

The newspaper says that Isuzu would keep production at that plant through at least 2014 if it were to go ahead and purchase the truck line.

Looking For Major Cash

The Isuzu deal seems to be the most promising one in GM’s quest to sell off as much as $5 billion in assets in a bid to raise cash. HUMMER has no offers while Saab is still a mystery as far as how GM plans to handle its Swedish company.

Additional savings are expected as GM delays the introduction of certain models, scales back Pontiac and possibly finds a partner for Saturn or sells or closes down that brand.

GM is mum regarding Isuzu, but the local UAW chapter reports being informed that a deal is in the works. Last September, The Auto Writer reported that the two companies were in negotiations.

Source: The Detroit News

Photo courtesy of General Motors Company.