Navistar to Buy GM’s Medium-Duty Truck Business

General Motors Corp. and International Truck and Engine Corp. said Thursday they have reached tentative agreement for International’s parent company Navistar Corp. to buy GM’s medium-duty truck business.

Terms of the deal, expected to close next year, were not released.

Under the plan, Navistar would buy GM’s s medium-duty truck business and the rights to manufacture GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range, and the related service parts business.

Navistar would sell a line of Chevrolet and GMC vehicles and service parts through GM’s dealer network in the United States and Canada, the two companies said in a joint statement.

The agreement is a step in GM’s plan to sell automobiles and light trucks globally, and would utilize Navistar’s strengths in commercial trucks and engines, and advance its strategy to build scale and reduce costs, the two said.