General Motors, Isuzu, in negotiation to sell GM Truck Division
The domestic automakers -- General Motors, Ford, and Chrysler -- have several methods to reduce costs. One is to let employees go. Another is to sell assets. GM is doing both. Latest news is the automaker is considering selling off its commercial medium-truck division. Writes the Detroit News: General Motors Corp. is negotiating with Isuzu Motors Ltd. to sell its medium-duty truck business, a move that would help the cash-strapped automaker raise money, cut costs and help ensure it complies with a $13.4 billion federal loan package. The negotiations involve keeping the truck division in Flint through 2014, a local union official said Monday. That contrasts with an earlier failed agreement with Navistar International Corp., which would have relocated jobs to another factory. "I think it's great news," said Mark Hawkins, the chairman of UAW Local 598, who said the negotiations were disclosed in a letter from the UAW on Jan. 29. About 525 hourly and salaried workers are employed on the medium-duty truck line in Flint, which produced 22,000 vehicles last year, GM spokesman Tony Sapienza said. Trucks produced at the plant include the GMC TopKick and Chevrolet Kodiak. Our take? Isuzu is one of the world leaders in commercial trucking and vehicle. Yet, when it entered the consumer auto market, it allied itself with GM. Later, the American automaker purchased some controlling shares of the company, which Isuzu later purchased back. Now it looks like the tables are turned so to speak.
The best economic policy right now is to figure out a way to get consumers to buy new cars.