General Motors Corp and Japan’s Isuzu Motors are discussing the sale of GM’s medium-duty commercial truck business, the Flint Journal said on Friday.
The newspaper said the deal would keep production of medium-duty trucks at the current GM facility in Flint through the end of 2014, quoting unnamed sources.
It also said that UAW Vice President Cal Rapson, who heads negotiations with GM, had sent a letter to union officials on Friday saying that the negotiations between GM and Isuzu had not been finalized.
The newspaper quoted Rapson as saying that while the sale of the plant was not “a done deal,” the UAW and GM had signed a memorandum of understanding that would allow the transaction to move forward.
GM issued a statement in response to the report saying that it was continuing to review its options for the Flint-based production line that makes the GMC TopKick and Chevrolet Kodiak commercial trucks.
The truck models are widely used as cargo haulers, dump trucks and in work fleets.
“While GM is assessing various strategic options for the business, no decisions have been reached and there are no details to share at this time,” GM spokesman Tony Sapienza said.
A preliminary deal by GM to sell the truck business to Navistar International Corp collapsed in August.
The medium-duty truck unit is one of several assets that GM is looking to sell in order to raise cash to ride out a downturn that has forced it to turn to the U.S. government for a $13.4-billion bailout.
GM is also looking to sell its Hummer SUV line and its Saab brand.