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GM to Return to U.S. Medium-Truck Market


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General MotorsCo. is poised to re-enter the growing and potentially lucrative U.S. market for medium-duty work trucks, an area it abandoned during its restructuring last decade.

 

The Detroit auto giant will team up with Japan’s Isuzu MotorsLtd. to procure work trucks to be sold in the U.S. under the Chevrolet brand. GM and Isuzu have worked together for decades. While Isuzu will build the vehicles, the No. 1 U.S. auto maker in terms of sales will rely on the GM dealer network and its reputation as a truck company to lay claim to a medium-duty market that has grown 3.5% in 2015.

 

GM will begin taking the Isuzu-built N-series truck and putting a Chevrolet brand on it soon, according to dealers briefed on the plan. GM will unveil the partnership Monday in a move likely to be well-received by a U.S. dealer body clamoring for more work trucks to sell amid stronger economic conditions.

 

http://www.wsj.com/articles/gm-to-return-to-u-s-medium-truck-market-1434309718?mod=yahoo_hs

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GM sold rebadge Isuzu cabovers for years. It seems likea logical place to start again. Hopefully this will lead to GM getting back into the conventional truck and tractor medium duty market.

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The old Chevy LUV pickup in the 70's was just a rebadged Isuzu pickup. Just a different grill. Actually for the market it was intended for, it wasn't a bad little pickup. I had one for a while and really liked it.

 

I view all of this as not a bad move. Why spend a rack of money on R&D and makes something from scratch when there is already a full blown entity that is joined with GM at the hip who is already making the product? Just take advantage of it, rebadge it, and expand market share.

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Here we go, the latest news from behind the scenes. Seems GM and Navistar (International Trucks) are in discussions now about countering the class 5 and 6 stuff that Ford is going to be putting out. Interesting. We'll just have to see what transpires.

 

http://www.ccjdigital.com/sources-indicate-gm-navistar-nearing-partnership/?utm_source=weekly-equipment&utm_medium=email&utm_content=07-01-2015&utm_campaign=CCJ&ust_id=e2538bb77f&

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I think GM success in the medium truck/tractor market will come down to how well received are the 2016 Ford F650 and F750. Ford is going to the Powerstroke in their medium duty trucks. I can see this being popular with customers that also have class 3-5 Powerstrokes, and will simplify their maintenance. I can also see it being quite unpopular with customers that don't want to be locked into Ford proprietary service on their medium duty trucks. Time will tell, even though I suspect Ford's up front pricing will be exceptionally low and be the deciding factor for most buyers.

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Just my perspective, but it seems GM's biggest issue with trucks above the half ton size is their dealerships. Avg Ford & Ram dealers will stock more 2500/3500 trucks on their lots & also seem willing to service them.

That also carries through the class 4/5 trucks they offer which is a natural progression for small business owners moving up as their needs grow.

 

There is a Chevrolet dealership I delivered to in Pataskala, OH that actually stocked, promoted, sold, serviced a lot of GM HD trucks. Had a bay specifically for them in service. They also did the same with Corvettes & sell the hell out of those too.

 

GM has had some good products over the years, but lack of service &/or specific parts kept me away from the 4500/5500 Kodiaks years ago. Maybe these deals with Isuzu & Navistar will fill that parts/service need where GM dealers have clearly left a gap.

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The GEO Storm was an Isuzu Impulse and the Chevy Nova sold in the 90's was built by Toyota. There are a variety of cars that have been rebadged vehicles from other manufacturers that sold well and were generally decent vehicles to own.

Just because it's built by a different company doesn't mean GM doesn't put their flair on it and then have to back the product.

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