GM ends production of medium-duty trucks

Bankrupt automaker to stop building the Chevrolet Kodiak and GMC Topkick by July 31.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)

Pontiac's road to oblivion
The Pontiac most of us know today really started in the early 1960s. Over the years, there have been several attempts to bring it back.
How secure do you feel in your job?
  • Extremely secure
  • Fairly secure
  • A little insecure
  • Not secure at all

DETROIT (Reuters) -- General Motors Corp, which filed for bankruptcy protection a week ago, said Monday that it would cease production of medium-duty trucks by July 31 after attempts to sell the operation failed.

"After four years of working with multiple potential buyers, General Motors has decided to wind down its medium-duty truck operations," the automaker said in a statement.

GM (GMGMQ) plans to cease production of Chevrolet Kodiak and GMC Topkick medium-duty trucks by July 31. The automaker sold about 20,000 of the vehicles last year, down from roughly 30,000 in 2007, as the U.S. economy sank into a deep recession.

Chief Executive Fritz Henderson told reporters at an event in Warren, Michigan, that the medium-duty truck the business had not been successful for years and workers would be deployed to other facilities or offered an attrition program.

GM has moved quickly since it filed for bankruptcy on June 1 to disclose plans for brands and operations not part of its long-term strategy. GM plans a quick sale of its profitable assets by the end of August to a new company.

Last week, GM said it had reached preliminary agreements to sell its Saturn brand to dealership group Penske Automotive Group and its Hummer brand to little-known Chinese heavy equipment maker Sichuan Tengzhong Heavy Industrial Machinery.

About 400 hourly and salaried workers are involved in the production of the medium-duty trucks at a GM plant in Flint, Michigan, spokesman Jim Hopson said.

The Flint plant has more than 2,100 employees overall and also builds light pickup trucks for GM. The automaker plans to continue production of the pickup trucks at the plant.

Navistar International Corp had been one of the potential buyers for the GM medium-duty truck operation. GM and Navistar had reached a tentative agreement on a sale, but the pact expired in August 2008 without a deal being reached. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Copyright 2009 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.