GM to Source Medium-Duty Trucks from Isuzu Under New Licensing Deal
General Motors is set to re-enter the US medium-duty truck market by selling Chevrolet-badged models built by Isuzu, with most units coming from Japan and some assembled in the US.
General Motors plans to return to the US medium-duty truck segment by selling Chevrolet-branded models built under licence from Japan’s Isuzu Motors. The move is expected to take effect in 2016, according to people familiar with the arrangement.
The trucks will be based on existing Isuzu designs, with most units built in Japan and powered by diesel engines. Around 80 percent of the vehicles will be imported from Japanese factories, while the remainder will be assembled in the United States using petrol engines supplied by GM. US assembly will be handled by an Isuzu partner facility.
The deal marks GM’s re-entry into a market it exited in 2009 during its bankruptcy restructuring. It also extends a longstanding relationship between the two companies. GM and Isuzu have previously collaborated on pickups and commercial vehicles, including the Chevrolet Colorado and Isuzu’s i-Series. GM once held a substantial equity stake in Isuzu, but divested in 2006 amid financial difficulties.
Chevrolet-badged Isuzus for US buyers
The new medium-duty trucks will be sold under the Chevrolet nameplate, targeting commercial customers who previously relied on GM’s Kodiak and TopKick models. The agreement allows GM to quickly re-establish a presence in the segment without the cost of developing a new platform. Isuzu’s established expertise in medium-duty trucks and global production capacity make it a logical partner.
No official production or sales targets have been disclosed, and both companies have so far declined to comment publicly. The majority of the trucks will be diesel-powered, reflecting Isuzu’s strength in that area, but the US-assembled versions will offer petrol engines sourced from GM.
Background: GM and Isuzu’s commercial vehicle history
GM’s previous medium-duty offerings, including the Chevrolet Kodiak and GMC TopKick, were discontinued in the wake of the company’s financial crisis. The new licensing deal with Isuzu offers a cost-effective route back into the segment. The two companies have maintained technical and commercial ties since the end of their equity alliance, with Isuzu also considering GM engines for new models in other markets.
The arrangement is expected to benefit both parties: GM regains a foothold in a profitable segment, while Isuzu secures a larger production volume and a renewed US presence through Chevrolet’s dealer network.
For more on Isuzu’s global product strategy, seeIsuzu Considers GM Diesel Engines for Indian Pickup Launch.
