Posted on : 08-06-2009 | By : Truckdriversnews | In : Thoughts from a trucker
Bankrupt auto maker General Motors Corp. (GMGMQ) said Monday that it will wind
down production of its medium-duty trucks by the end of July after failing to find a buyer for the operations.
GM started its search for a buyer as it looked to raise capital and streamline its North American operations four years ago.
The company thought in December 2007 it had found a buyer – Navistar International Corp. (NAV) – but that deal fell apart this past August amid tough economic environment and a big downturn i
n commercial trucks due to high gas prices. That deal had been expected to gener ate less than $1 billion in proceeds for GM, which said at the time that it would continue to look at other options for the business.
As a result, the Chevy Kodiak and GMC Topkick trucks will join a host of other GM models that are being unceremoniously cut as the company tries to make itself leaner and meaner for the vehicle market’s new realities.
Through May, Kodiak sales were down 48% at 2,075 while the Topkick slumped 69% to 1,806.
GM shares recently traded on the Pink Sheets at 99.3 cents, up 12.8 cents.