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GM in talks with Isuzu for medium-duty truck line
Tuesday, February 03, 2009
Springfield, Ohio — General Motors and Isuzu Motors are talking about a potential sale of GM's Flint, Mich.-based medium-duty commercial truck business, according to a report in The Flint Journal.
If the deal is finalized, it would retain about 500 jobs for Flint workers that were earlier thought to be coming to Springfield when Navistar International was in negotiations to buy the same line.
United Auto Workers International Vice President and Director Cal Rapson said in a letter that negotiations between GM and Isuzu have not been finalized, the report said, but that a memorandum of understanding had been signed.
The letter also said GM and the UAW have reached an agreement that would allow for the sale of the truck business to Isuzu.
GM issued a statement on its Web site, stating it is "assessing various strategic options for the business" but that "no decisions have been reached and there are no details to share at this time."
Navistar announced in December 2007 it was in discussion to purchase the assets, intellectual property and rights to manufacture medium duty GMC and Chevrolet trucks.
In August 2008, GM announced it would not sell the medium-duty truck business to Navistar after the memorandum of understanding between the two companies expired.
When Navistar announced it would bring the medium duty truck jobs to Springfield, it made a big difference to members of UAW Local 402, said President Jason Barlow.
"Obviously it's disappointing and I'm upset with both sides. We ratified a contract on the belief that those jobs were being negotiated with Navistar for Springfield," he said.
The sale to Navistar collapsed, in part, Barlow said, because GM was unable to keep a commitment to bring replacement work to the truck plant in Flint.
"I can't blame (UAW Local) 598 because they need to keep their jobs," he said.
Barlow's frustration is now caused by Navistar's failure to bring other new work to the Springfield plant.
Barlow, U.S. Rep. Steve Austria, R-Beavercreek, and officials from the city of Springfield, Clark County, Greater Springfield Chamber of Commerce, and the Ohio Department of Development will meet later this week to discuss ways to secure Springfield's future.
Contact this reporter at (937) 328-0371 or elroberts@coxohio.com.
