Share price of Navistar International Corporation decreased 7.7% to $13.76 on Jun 9 due to an overall decline in the market. Meanwhile, Navistar signed an agreement with General Motors Company (GM Quick QuoteGM - Free Report) per which it will produce the cutaway model of General Motors’ G Van at the Springfield, OH plant from the first half of 2017.

Navistar is very enthusiastic about the new deal. The company will be hiring 300 workers to support production. It will also recommission its second line at the plant.

Navistar intends to produce higher volumes of light- and medium-duty products at the Springfield plant. Increased production will help the company to achieve its target to drive automotive quality in the commercial vehicle industry.

General Motors manufactures cutaway vans for commercial customers. These customers use the vehicles as utility trucks, buses, ambulances and rescue vehicles.

According to General Motors, this partnership will help provide flexibility to the Wentzville, MO plant. This plant is focused on satisfying the rising demand for mid-size trucks and full size vans.
 
Navistar and General Motors have worked together earlier as well. In Sep 2015, the companies signed an agreement to jointly develop and assemble medium-duty, conventional cab Class 4/5 commercial vehicles.
 

NAVISTAR INTL Price

NAVISTAR INTL Price | NAVISTAR INTL Quote

Navistar manufactures and sells commercial trucks, mid-range diesel engines, buses, military vehicles, and chassis for motor homes and step-vans. It also provides service parts for trucks and trailers. Currently, the company carries a Zacks Rank #3 (Hold).

Some better-ranked automobile stocks include Lear Corp. (LEA Quick QuoteLEA - Free Report) and Superior Industries International, Inc. (SUP Quick QuoteSUP - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>