Isuzu says no to General Motors trucks proposal

We reported in this blog last week that General Motors was looking to sell its midsize trucks operation and that it found a buyer in Isuzu.

Oops.

Well, Isuzu has basically said, “Hey, slow down!” The Japanese truckmaker will not be buying GM’s truck operations after all. Apparently the Japanese commercial truck giant expects that it will have difficulty reaching its full year net profit target.

The company expects to make a net profit of $801.8 million in its current fiscal year that goes to March 31.

Our take? General Motors takes another hit.

via Reuters

Isuzu to take over General Motors trucks?

Companies who find themselves in financial crisis and in need of quick cash have been known to sell off their assets. Look at Ford and its sales of Aston Martin and Jaguar and Land Rover. Now Chrysler is trying to sell Viper and General Motors is trying to sell Hummer.

Now there is a report over at Reuters that GMalso intends to sell its midsize truck operations to auto maker Isuzu, Japan’s number two truck manufacturer.

We're not fully surprised. General Motors and Isuzu have a history, with the former once owning 49 percent of Isuzu

GM has offered assistance to the Japanese vehicle maker in the past. Now, it seems, the tables are turned.

Isuzu says that it has not received an offer to buy. It does say, however, that if an offer is made, it would definitely consider it.