GM Announces Partnership with Navistar for Cutaway Van Production

General Motors is building as many Chevrolet Colorado and GMC Canyon pickups as they can, but they are still not able to keep up with the demand. Currently, there is a 41 day supply of Colorados and 58 day supply of Canyons in dealers or being sent out. Part of the problem of not meeting demand is the Wentzville, MO is working at full tilt producing as many midsize trucks, along with full-size commercial vans.

But GM has a possible solution to increasing production of their midsize trucks; outsource some of the van production. In a statement released on Friday, GM and Navistar, Inc announced a new partnership where Navistar would build the cutaway version of the Chevrolet Express and GMC Savana. Production will take place at Navistar's Springfield, Ohio plant starting in the first half of next year.

"This partnership will provide our Wentzville, Mo., assembly plant more flexibility to keep up with continued demand for mid-size trucks and full size vans," said Cathy Clegg, GM North America Manufacturing and Labor Relations Vice President.

Automotive News has learned from a source that the move of the cutaway vans will enable GM to produce an additional 40,000 trucks at Wentzville.

But what about the possible deal between GM and AM General to produce the cutaway vans last November? The same source says the discussions between the two didn't pan out.

Source: Navistar, Automotive News (Subscription Required)

Press Release is on Page 2

Navistar Partners With GM To Manufacture Cutaway G Van

LISLE, Ill., June 9, 2016 /PRNewswire/ -- Navistar, Inc. today announced it has reached an agreement with General Motors (GM) to manufacture the cutaway model of GM's G Van at Navistar's Springfield, Ohio plant starting in the first half of 2017. With this multi-year contract, Navistar will add at least 300 jobs and recommission its second line at the plant.

"We're very pleased to partner with GM on this important manufacturing opportunity," said Persio Lisboa, president, Navistar operations. "Our Springfield plant is an important part of our manufacturing footprint, and we've been preparing it for a higher volume concentration of light- and medium-duty products as part of our manufacturing strategy. This is an important step towards our goal to drive automotive quality into the commercial vehicle industry."

GM produces cutaway vans for commercial customers. The company's Chevrolet Express and GMC Savana vans, which are full-length on frame, are upfitted into utility or service vehicles, ambulance or rescue vehicles, shuttle buses or school buses.

"This partnership will provide our Wentzville, Mo., assembly plant more flexibility to keep up with continued demand for mid-size trucks and full size vans," said Cathy Clegg, GM North America Manufacturing and Labor Relations Vice President.

Navistar and GM are not disclosing any further details of the agreement at this time.

Navistar primarily manufactures its DuraStar® and WorkStar® models at the Springfield plant. Last September, Navistar and GM announced a separate long-term agreement to develop and assemble a medium-duty, conventional cab Class 4/5 commercial vehicle at Navistar's Springfield plant starting in 2018. The future products will be jointly developed using Navistar's expertise in rolling chassis configurations and manufacturing capabilities, and GM's commercial components and engines. The trucks will be available under both the International® and Chevrolet brands, and will mark Navistar's reentry into the Class 4/5 market.