General Motors Co.GM announced that it has entered into a partnership agreement with Japanese company, Isuzu Motors Ltd. ISUZY . 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 new 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. This partnership will also allow Isuzu to strengthen its product lineup. Both the companies will explore further options by utilizing General Motors' commercial-vehicle parts for Isuzu products.
The Isuzu trucks to be supplied to General Motors will feature regular-cab and crew-cab body styles. The vehicles will be equipped with 6-liter V-8 gasoline engines built by General Motors or 3-liter and 5.2-liter turbo-diesel engines manufactured by Isuzu. The gasoline-powered models will be assembled in Charlotte, MI.
General Motors and Isuzu have been partners for more than 40 years now. Isuzu produces diesel engines. Jointly, the two companies have manufactured trucks like the Chevy Colorado pickup, sold as the i-Series by Isuzu. General Motors sold its stake in Isuzu in 2006 due to financial difficulties. In 2009, the automaker faced bankruptcy and departed from the medium-duty truck market.
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