Markets

General Motors & Navistar to Develop Commercial Vehicles

General Motors CompanyGM and Navistar International Corporation NAV recently signed a long term agreement for the development of medium-duty, conventional cab Class 4/5 commercial vehicles. This joint effort will strengthen the product line-up of Navistar. The partnership will also expand General Motors' Chevrolet commercial truck portfolio with the addition of new medium-duty conventional cab trucks.

Both the companies will combine their expertise to build the new line of vehicles. Navistar will provide its rolling chassis configurations and manufacturing capabilities while General Motors will offer its commercial components and engines.

These vehicles are expected to be manufactured from 2018 at Navistar's facility in Springfield, OH. Navistar intends to hire 300 new workers and invest over $12 million in the plant. The funds will be utilized to upgrade the equipment infrastructure of the facility.

Navistar's partnership with General Motors will help the former offer better technologies to customers. in the medium-duty vehicle range. It will also improve the company's scale of operations.

General Motors is gaining new contracts to expand its business. In Jun 2015, the company entered into a partnership agreement with Japanese company, Isuzu Motors Ltd. Per this agreement, General Motors will re-enter the U.S. medium-duty truck market by 2016 with Chevrolet-branded vehicles supplied by Isuzu. The deal will help General Motors to expand its commercial-vehicle offerings with low cab-forward models that are produced by Isuzu, based on the Isuzu N-Series. These vehicles will be sold by Chevrolet dealers in the U.S. Both the companies will explore further options by utilizing General Motors' commercial-vehicle parts for Isuzu products.

Currently, General Motors is a Zacks Rank #3 (Hold) stock while Navistar holds a Zacks Rank #4 (Sell).

Better-ranked stocks in the auto industry include Ford Motor Co. F and PACCAR Inc. PCAR , both carrying a Zacks Rank #2 (Buy).

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FORD MOTOR CO (F): Free Stock Analysis Report

PACCAR INC (PCAR): Free Stock Analysis Report

NAVISTAR INTL (NAV): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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