Japanese truck maker Isuzu Motors might buy General Motors (GM) medium-duty truck division, according to Japan’s Kyodo news agency today. Be the first time a manufacturer takes a business in Japan a major U.S. motor carriers.
According to the Nikkei business daily, GM contacted Isuzu in mid-September to gauge the interest of the Japanese firm to buy its medium-duty truck unit. Sources close to the negotiations said that Isuzu would consider the proposal positively, so that both companies are expected to shortly begin formal negotiations to conclude an agreement later this year.
Although the agreement still must be realized, it is estimated that the transaction would be valued at tens of billions of yen. Within the trucking industry, GM’s global sales are at the fifteenth position, and Isuzu is the second largest company in Japan. Produces about 270,000 units annually, although its business area is concentrated in Southeast Asia and small trucks.
The acquisition of medium-duty truck unit of GM Isuzu expand production by 60% to the year and would exceed 110,000 units and Hino Motors, the largest truck manufacturer in Japan. In addition, Isuzu would rise to the post 8 of 12 of the world list of manufacturers, also surpassing Toyota, which ranks tenth.
The decline in the pace of global economy and high gas prices have caused a drop in vehicle sales, which the industry has been significantly diminished their profits.
The worsening financial crisis could force U.S. automakers to sell its assets to secure funds.
Popularity: 4% [?]
Related posts:
That would be great news. WE really need to get the medium duty division back up and running.