GM to sell medium truck division

General Motors Corp. has tentatively agreed to sell its medium-duty truck business to a unit of truck maker Navistar International Corp., the companies said Thursday. No terms were disclosed, however, and GM said more work must be done on details of the deal. The sale would be part of GM's plan to focus on building and selling cars and light trucks worldwide. International Truck and Engine Corp., the principal operating subsidiary of Warrenville, Ill.-based Navistar, and GM said they have entered into a non-binding memorandum of understanding about a sale.

Financial details of the deal, which is expected to close next year, weren't released. GM spokesman Rob Minton said the agreement could lead to a sale, but more work needs to be done on specifics. Under the deal, Navistar would purchase certain assets, intellectual property and rights to manufacture medium-duty GMC and Chevrolet brand trucks, such as dump trucks, tow trucks and utility trucks. It also includes purchase of the related service parts business, the companies said. Navistar would sell the vehicles and parts for service through GM's dealer network in the U.S. and Canada.