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Report: Navistar May Sign Deal With General Motors

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Navistar International Corp (NYSE: NAV) ticked up 2 percent Tuesday on a rumor it's close to signing a truck-making deal with General Motors Company (NYSE: GM).

The partnership would concern medium-duty trucks that GM stopped making in 2009, according to a report by Forbes Magazine that cited unnamed industry sources.

Lisle, Illinois-based Navistar traded recently at $22.55, up $0.40.

Navistar last year reportedly lost out on a $400 million annual business building commercial trucks for Ford Motor Company (NYSE: F) after Ford pulled the plug.

Navistar shares are off nearly 40 percent in the past 12 months. Its 2014 revenue was nearly flat at $10.8 billion and its adjusted loss narrowed to $7.64 a share, from a loss of $10.66 a year earlier.

A GM deal with Navistar would be "the second prong" in a GM reentry to the medium-truck business, according to Forbes.

GM recently launched a new venture with ISUZU MOTORS LTD (OTC: ISUZY) to sell a version of Isuzu's N-Series "cab-over" trucks, a special configuration of delivery and service trucks that positions the driver over the engine rather than behind it, according to Forbes, and also are classified as medium-duty models.

The Isuzu vehicles will be distributed by participating Chevrolet dealers in the U.S. market starting in 2016.

 

Related Articles (GM + NAV)

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Posted-In: ForbesNews Rumors

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