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GM To Scrap Medium-Duty Trucks

Division sacrificed as part of company restructuring

By Mark Huffman
ConsumerAffairs.com

June 8, 2009
If General Motors can't find a buyer for its medium-duty truck division — and at this point it appears certain that it can't — it will shut down its production line for the vehicles July 31.

"After four years of working with multiple potential buyers, General Motors has decided to wind-down its medium-duty truck operations," the company said in a one paragraph statement. "Production of the Chevy Kodiak and GMC Topkick medium duty trucks will cease by July 31, 2009."

GM sold about 20,000 of the trucks last year, a one-third drop from 2007. The economy obviously had a lot to do with it, but CEO Fritz Henderson said the division had been on a downhill slide for years. Workers on the truck assembly lines will be used elsewhere within the company, he said.

As it entered bankruptcy a week ago, GM disclosed plans to scale back its operations, hiring fewer people and reducing the number of brands and models under the GM umbrella. The company disclosed last week its in talks to sell its Hummer brand to a Chinese concern and auto magnate Roger Penske is picking up Saturn.

The mid-sized truck division is a relatively small part of GM, employing about 400 salaried and hourly workers in Flint, Michigan. GM said it would continue to build and sell its existing line of pick-up trucks, which are made at the same plant.

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