GM-Navistar joint venture

[kscarbel2]

GM Believed Ready to Announce Commercial Truck Venture With Navistar

Forbes / June 30, 2015

With the nation’s steadying economy accelerating demand for all manner of commercial trucks, the truck-production landscape is evolving – and revolving – as former partners and rivals scramble for position in what is projected to be a boom period for truck manufacturing.

Industry sources believe General Motors is close to announcing a new partnership with Navistar International to manufacture “medium-duty” trucks that cover the industry’s Class 4, 5 and 6 classifications.

GM built medium-duty trucks for decades before exiting the business in 2009 amidst its bankruptcy reorganization and the recession.

A spokesperson for GM said the company has made no announcements and had no information to share.

A GM link-up with Navistar would be the second prong in a GM re-entry to the medium-truck business: earlier this month, the company announced a new venture with Japan’s Isuzu Motors to sell a version of Isuzu’s N-Series low-cab-forward (cab-over) light trucks (higher GVW versions fall into the lower end of the U.S. market medium truck range).

Navistar, meanwhile, has considerable history with GM – and crosstown rival Ford Motor.

Navistar and Ford last year severed their Blue Diamond venture that for a decade saw Navistar build medium trucks sold by Ford’s commercial truck network.

As part of an agreement struck with the United Auto Workers union in 2011, Ford this year will begin in-house production of its medium-duty trucks, the 2016 F-650 and F-750, at a plant in the Cleveland suburb of Avon Lake, Ohio.

A Wall Street Journal story last year pegged the Ford business as worth $400 million annually to Navistar.

Navistar was a suitor when GM was shopping its money-losing medium-truck business in 2007, but in 2008 backed out of a deal to purchase the unit as the U.S. economy began to slip, pulling commercial-truck sales along for the ride. The recession marked the beginning of a bad stretch for the storied maker of heavy-truck diesel engines and its own International-brand commercial trucks – including the largest Class 7 and Class 8 highway haulers – capped by Navistar’s costly backing of a failed engine design to enable its engines to comply with new federal emissions standards.

As GM neared the end of its in-house production of medium-duty pickups, the company was producing about 22,000 units annually, but then-CEO Fritz Henderson said the business was unprofitable.

After being jettisoned by Ford, Navistar said it would strike out alone with its International brand, but the move comes as the company’s share of the medium truck segment dipped from 36 percent in 2011 to a current share of about 26 percent.

Navistar said one plan to beat back former partner Ford and other rivals is to offer a wider range of engine and transmission choices in its medium trucks, but a team up with GM would markedly increase production volumes for the company, while GM would gain immediate access to Navistar’s portfolio and manufacturing capacity, enabling a swift reboot for its abandoned medium-truck presence – just in time to parry Ford’s new in-house truck lineup.

[kscarbel2]

Sources indicate GM, Navistar nearing partnership

Commercial Carrier Journal (CCJ) / June 30, 2015

General Motors exited its 2009 bankruptcy without a medium duty commercial truck segment and was greeted by a country in the throws of a recession, but all indications are the Detroit behemoth is set to come roaring back.

Earlier this month the company announced a partnership with Isuzu, an arrangement under which GM will rebrand Isuzu’s N-Series trucks and sell them at Chevrolet dealerships nationwide.

First reported by Forbes Tuesday, unnamed sources indicate GM is poised to reach a similar arrangement with Navistar International, who would manufacture Class 3 – 5 trucks for GM.

A spokesperson for Navistar says the company has made no announcements and has no information to share. Messages to GM were not returned.

Such an arrangement would not be unfamiliar territory to Navistar. Last year Ford formally broke off its relationship of more than a decade with Navistar. Under the Blue Diamond venture, Navistar built medium-duty trucks that were sold at Ford’s commercial-truck dealerships. Navistar (along with Cummins and Allison) was left behind when Ford elected to integrate its powertrain and bring manufacturing in-house beginning with the 2016 model year.

A partnership with Navistar would allow GM to re-enter the segment just as the first generation of Ford-built F-650/750s are hitting the market, while also unlocking GM’s commercial truck dealership network to Navistar just as Ford emerges as a player in the segment.

CEO Troy Clarke, during Navistar’s earnings call earlier this month, said the company is currently riding a wave of medium-duty truck replacement cycles.

“And the good news is we are seeing growth in this important segment in 2015 due to increase in business investment and extension in the housing market,” he says.

Clarke says he believes these conditions will remain favorable and forecasts North American sales of Class 6 through 8, including buses, in the range of 350,000 to 380,000 units this year. Navistar is also gaining medium-duty market share quickly, jumping six percentage points in the second quarter of 2015 from the first quarter.

[DailyDiesel]

What is old is new. What is new is old.

[Red Horse]

GM and Navistar reach commercial vehicle agreement

DETROIT and LISLE, Ill., Sept. 30, 2015 /PRNewswire/ -- General Motors Co. and Navistar have reached a long-term agreement to develop and assemble future medium-duty, conventional cab Class 4/5 commercial vehicles, allowing Navistar to strengthen its product lineup and GM to expand its Chevrolet commercial truck portfolio.

"Bringing medium-duty conventional cab trucks back into the portfolio strengthens Chevrolet's commitment to providing commercial customers with more choices and one-stop shopping for a versatile lineup of trucks, vans and crossovers," said Ed Peper, U.S. vice president of GM Fleet and Commercial Sales.

The future products will be jointly developed using Navistar's expertise in rolling chassis configurations and manufacturing capabilities, and GM's commercial components and engines. The vehicles are slated for production in 2018 and will be manufactured at Navistar's facility in Springfield, Ohio. Navistar plans to add 300 jobs and invest more than $12 million in facility upgrades and state-of-the-art equipment to produce the new vehicles.

"Our collaboration with GM is another example of our customer-centric, open integration approach—providing our customers with the best technologies available," said Bill Kozek, president, Truck and Parts, Navistar. "By working with an industry-leading company like GM, we'll be able to enhance our medium-duty product portfolio and leverage our scale and expertise in manufacturing medium-duty trucks."

Specific terms of the agreement were not disclosed. Additional product information will be announced later.

.

[DailyDiesel]

Interesting that the work is staying in the US and not heading down to International's Mexico factory. I wonder if Ford bringing their commercial trucks to Ohio had anything to do with that decision? Great news all around.

[Red Horse]

D-Diesel- agree-thought the same thing that this GM deal would take the place of Ford at Navistars Escobedo plant. But if these are going to be class 4 and 5's as opposed to the Ford deal which was class 6 and 7 using the Navistsar 4000 series chassis, does that have something to do with it? Are the Navistar TerraStar class 5's built in Springfield-that might explain it.

How about it KSC-your spin?

[kscarbel2]

Chevrolet's New Medium-Duty Truck to Get Duramax Engine, Allison Transmission

Heavy Duty Trucking  /  March 14, 2017

Chevrolet's medium-duty truck will pair a Duramax diesel engine with an Allison transmission and will arrive in 2018, General Motors announced at the Work Truck Show.

Chevrolet and Navistar are jointly developing the Class 4/5 truck for vocational uses such as construction fleets, said John Schwegmen, GM Fleet's U.S. director of commercial product and medium duty.

"Our new Chevrolet medium-duty will be the flagship of our truck portfolio for fleet and commercial customers, and we believe the strength of Duramax/Allison powertrain combination will be able to tackle various jobs — from general contracting to urban delivery to bucket loaders and wreckers," Schwegman said. "To win customers, we’re marshaling the best diesel and heavy-duty transmission engineers in the world and offering more choices than any other manufacturer."

Chevrolet has been installing Allison transmission in its work trucks since the 1950s. The first Duramax diesel engines were introduced in Chevrolet and GMC trucks in 2001. They use technologies such as aluminum cylinder heads, the quick-start system and the Venturi Jet Drive Oil separator.

Technical specifications for the truck will be released closer to launch.

[Red Horse]

1 hour ago, kscarbel2 said:

Chevrolet's New Medium-Duty Truck to Get Duramax Engine, Allison Transmission

Heavy Duty Trucking  /  March 14, 2017

Chevrolet's medium-duty truck will pair a Duramax diesel engine with an Allison transmission and will arrive in 2018, General Motors announced at the Work Truck Show.

Chevrolet and Navistar are jointly developing the Class 4/5 truck for vocational uses such as construction fleets, said John Schwegmen, GM Fleet's U.S. director of commercial product and medium duty.

"Our new Chevrolet medium-duty will be the flagship of our truck portfolio for fleet and commercial customers, and we believe the strength of Duramax/Allison powertrain combination will be able to tackle various jobs — from general contracting to urban delivery to bucket loaders and wreckers," Schwegman said. "To win customers, we’re marshaling the best diesel and heavy-duty transmission engineers in the world and offering more choices than any other manufacturer."

Chevrolet has been installing Allison transmission in its work trucks since the 1950s. The first Duramax diesel engines were introduced in Chevrolet and GMC trucks in 2001. They use technologies such as aluminum cylinder heads, the quick-start system and the Venturi Jet Drive Oil separator.

Technical specifications for the truck will be released closer to launch.

Hmm...."to bucket loaders".....  And I thought the Ford marketers were brain dead.  Perhaps at some point Mr Schegman's staff will provide him  pictures of a "bucket loader" and an aerial bucket truck!  Wonder if the lack of reference to a gas engine has any significance??

[RoadwayR]

6 hours ago, Red Horse said:

Hmm...."to bucket loaders".....  And I thought the Ford marketers were brain dead.  Perhaps at some point Mr Schegman's staff will provide him  pictures of a "bucket loader" and an aerial bucket truck!  Wonder if the lack of reference to a gas engine has any significance??

Well, before you go thinking Ford and Chevy are the only manufacturers whose marketing departments are clueless when it comes to commercial truck advertising, check out this example from DTNA, an organization that certainly ought to know better:  In the February issues of Fleet Equipment, there is a 2 page ad commemorating the 50th. anniversary of Western Star.  A wonderful spread showing a late model Star in a logging setting in a rich sepia tone, and copy touting Western Star's origin and experience in demanding applications.  Nice.  In the background is a very clear shot of an old Mack DM800!  No question Western Star is a fine truck, but seriously guys, don't show one of your competitor's old soldiers in your nostalgic ad! 

As for the Chevy medium duty announcement,  my guess is there may be a new gasoline engine under development but it might not be ready when the new truck debuts.......    

   

[Red Horse]

15 hours ago, RoadwayR said:

Well, before you go thinking Ford and Chevy are the only manufacturers whose marketing departments are clueless when it comes to commercial truck advertising, check out this example from DTNA, an organization that certainly ought to know better:  In the February issues of Fleet Equipment, there is a 2 page ad commemorating the 50th. anniversary of Western Star.  A wonderful spread showing a late model Star in a logging setting in a rich sepia tone, and copy touting Western Star's origin and experience in demanding applications.  Nice.  In the background is a very clear shot of an old Mack DM800!  No question Western Star is a fine truck, but seriously guys, don't show one of your competitor's old soldiers in your nostalgic ad! 

As for the Chevy medium duty announcement,  my guess is there may be a new gasoline engine under development but it might not be ready when the new truck debuts.......    

   

Hah-good one on Western Star-surprised heavy truck people would not catch that.  Going back to Ford check out the video where the "fleet manager" in the "oil and gas sector" talks about her  Super Duties.   All kinds of 450/550's and in the background?  International bucket trucks.  If you have to do your spot at that company, maybe you could cut out the scenes where your competitor to 750 is clearly shown.  And by the way, "double whammy"-this company in the "Oil and Gas sector"-you would think its an oil exploration/producing outfit?  Nope-looks like its an electric utility.

As for not having a gas motor right out the gate, that would be surprising given Fords big sales numbers with 650 gas.

[TS7]

More badge engineering. Maybe they will bring back the Astro 95.

[RoadwayR]

https://www.trucks.com/2017/06/22/spy-shots-first-look-navistargm-medium-duty-work-truck/

[41180]

Looks nice 

[kscarbel2]

6 hours ago, RoadwayR said:

https://www.trucks.com/2017/06/22/spy-shots-first-look-navistargm-medium-duty-work-truck/

Spy Shots: First Look at Navistar/GM Medium-Duty Work Truck

Trucks.com  /  June 22, 2017

Here’s the first look at the medium-duty truck Navistar International Corp. and General Motors Co. are developing together.

The companies have an agreement to develop and assemble future conventional cab trucks in the Class 4 and 5 work segments.

The deal puts Navistar back in a truck category it exited when production of its International TerraStar model ended earlier this year. It also helps GM to expand its Chevrolet commercial truck portfolio.

This spy shots are of a mule, or test vehicle. They show a chassis cub work truck with a fiberglass International-style hood that swings up from the windshield.

The photos were taken this week at a Bosch facility near Ann Arbor, Mich., where the truck is undergoing testing.

The new truck line is jointly developed using Navistar's expertise in rolling chassis configurations and manufacturing capabilities, and GM‘s commercial components and engines.

The vehicles are slated for production in 2018 and will be manufactured at Navistar's facility in Springfield, Ohio. Navistar plans to add 300 jobs and invest more than $12 million in facility upgrades and state-of-the-art equipment to produce the new vehicles.

“Our collaboration with GM is another example of our customer-centric, open integration approach – providing our customers with the best technologies available,” Bill Kozek, Navistar’s president of trucks and parts said when the project was announced.

The truck is expected to debut at the Work Truck Show in Indianapolis in March. GM has already announced that its version will have a Duramax diesel engine and Allison transmission.

.

[RoadwayR]

It looks interesting.  Seems to be an I-beam front axle under it, and judging by how high the cab sits on the frame I would be willing to wager it has straight frame rails front to back.  Tip hood and fenders too, looks like it has DuraStar hood hinges above the front bumper.  More of a class 6 design than a 4/5, much like the old TopKick/Kodiak or TerraStar.  Might not be too much trouble to expand that platform into the higher GVW ranges.  

[kscarbel2]

Related reading - https://www.bigmacktrucks.com/topic/51205-chevrolet-to-offer-class-45-silverados/

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[Red Horse]

so is this the Navistar version?  If so looks like they are sticking with old Terrastar cab and only commonality is chassis/power trains???

[RoadwayR]

No, don't think so.  I hear the International version will use the Silverado cab like the Chevy version.  Note both of those trucks in the pictures are sporting "MaxxForce' hood badges.

[RoadwayR]

I believe the photo in your June 23rd., 2017 post is of the Navistar version.  You can see where the diamond goes in the grille.

[Red Horse]

7 minutes ago, RoadwayR said:

I believe the photo in your June 23rd., 2017 post is of the Navistar version.  You can see where the diamond goes in the grille.

good catch!