Navistar Confirms Interest in GM's Medium Duty Truck Unit

Speaking at the Reuters Manufacturing Summit in Chicago, Dan Ustian, Navistar's chairman, chief executive and president, confirmed interest in GM's medium-duty truck unit but insisted the company doesn't also plan to acquire the facility that manufactures these vehicles. According to Reuters, Ustian admitted the company wants to expand its product lineup and purchasing such a well-developed unit would pretty much make sense but, in case the Flint, Michigan plant would be also included in the contract, it would be impossible to reach an agremeent.

"We're always looking to grow and that compliments us pretty well. We don't need another plant," he said. "Anything that had that part of it would be difficult for us," Ustian explained, pointing out that Navistar doesn't currently need an additional production facility.

"Now, what we have to do is rationalize, on an ongoing basis, whether we need both of those facilities. We're waiting a little bit longer to see how the economy materializes. You can expect us to do something there yet this year."

This is not the first time when Navistar expresses its interest in acquiring a General Motors unit as the company entered an agreement with the American automaker in 2007. The deal was again concerning GM's medium-duty truck unit but, due to collapsing sales and changing market conditions, the two companies cancelled the partnership.

Navistar International Corporation is an engine truck manufacturer based in Warrenville, Illinois that owns around 1,000 dealerships across the United States, Canada and Mexico and more than 60 dealerships in 90 countries around the world. The company currently employs approximately 15,000 workers at various production facilities in the world.