GM will acquire a $6 billion truck business and sell it to Ford for $1.8 billion, the automaker announced Tuesday.
The deal will see Ford acquire a truck manufacturer and sell its truck line to the American automaker for $4.2 a gallon and $2.9 a gallon, respectively.
GM is expected to pay a $2 billion cash infusion, while Ford will receive a $500 million cash infusion.
Ford will buy the truck manufacturer, which is part of GM’s American manufacturing business, for $6 million.
The deal is expected soon.
Ford said it will also use the proceeds from the sale of its American truck business to invest in other American business.
Ford’s American truck production will begin next year, but the deal does not include a timeline for when that production will resume.
Ford shares fell 2.7% to $57.55 in premarket trade Tuesday.GM said it was planning to close the truck business in 2019.
GM said the transaction includes $2 million cash and a combination of debt and equity in the truck-maker.
The agreement also includes a payment of $200 million to the U.S. government for its loan guarantee program.
The U.K. government will also receive a payment for its assistance in the program.