GM to Close Medium-Duty Truck Operations

Joshua Duval

After a four-year search for a buyer produced no results, GM will shut down its medium-duty truck business by July 31.

According to Automotive News, GM sold about 20,000 Chevrolet Kodiak and GMC Topkick trucks in 2008, down from about 30,000 in 2007. GM put the Flint, Michigan-based operations up for sale back in 2005 as it sought to generate cash by selling assets. Although an agreement was reached in 2007 between GM and Navistar International Corp., the deal expired last summer without completion of the sale.

The Flint plant that produces the medium-duty trucks employs about 2100 employees, about 400 of which actually produce the Kodiak and Topkick. The rest of the employees at the plant produce light-duty pickups. GM CEO Fritz Henderson said the displaced workers would be moved to other facilities or be offered an attrition program.

The closing of its medium-duty truck operations is just the latest in a string of actions GM has taken to reduce its number of brands, models, and operations. Earlier this month, GM announced plans to sell Hummer and Saturn, and prior to those announcements the automaker said it will phase out Pontiac by 2010. Overseas, GM is preparing to offload its European operations, though it will keep a minority stake in the business. The Saab brand is still up for sale.

Source: Automotive News

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