GM to Honor Commitments to Fleet Customers as Medium-Duty Truck Production Ceases
In the wake of General Motors' announcement it is ceasing production of its medium-duty truck product lines, Jim Campbell, general manager, GM Fleet and Commercial Operations, reassured fleet customers sold orders for the Chevrolet Kodiak and GMC TopKick would be filled through the end of July. The automaker will also continue incentives and warranty programs for the medium-duty trucks.
Promising to work with customers through the phase-out of the Kodiak, TopKick, and T-Series, Campbell emphasized "this is a wind-down strategy." GM will "continue with ongoing competitive incentives to support vehicles through the wind-down process," he added.
GM medium-duty warranties are unaffected by the production shut-down, said Campbell, noting "vehicles can still be serviced by GMC and Chevrolet dealerships as they are today."
GM efforts over the past year to sell the medium-duty product line failed, including a tentative agreement with Navistar. "We had hoped to be able to partner with another manufacturer to continue within the segment. Despite many months of discussion with external parties, we have been unable to reach agreement to continue our medium-duty brands," said Campbell.
The production halt is one element of GM's restructuring plan to shed brands and operations not part its long-term strategy for the "New GM," following the automaker's June 1 bankruptcy filing. As the medium-duty truck market declined over the past year, GM sold about 20,000 of its Chevrolet and GMC segment models in 2008, down from roughly 30,000 in 2007, according to CNNMoney.com.