The tentative agreement in place under which Navistar would acquire General Motors’ medium-duty business has fallen through, Navistar announced today.

“Due to significant marketplace and economic changes, GM and Navistar have decided not to renew the memorandum of understanding to purchase GM’s medium duty truck business, which has expired,” Navistar said in a release. “GM will continue to run the medium duty business as it has in the past, including providing sales, service and marketing support to GM dealers for its medium duty trucks. GM will continue to review strategic options for the business, including continued discussions with Navistar.”

According to The Dayton Business Journal, the collapse of the deal saves about 500 jobs at the Flint Truck Assembly Plant, but costs Springfield, OH up to 700 jobs. The Springfield plant currently employs about 900 and is only about 15 to 20% occupied, The Dayton Business Journal said.

United Auto Workers (UAW) Region 1-C Director Duane Zuckschwerdt told The Flint Journal that the deal fell apart due to GM being unable to bring replacement work to the truck plant, as GM no longer wanted to move forward on a promised super-heavy-duty pickup product at the Flint facility.

"We've retained the medium-duty truck line, which we think will be good for Flint," Zuckschwerdt said. "We wanted to retain our work. Cal (Rapson, UAW International vice president) worked hard to maintain that work."

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