NEW YORK (TheStreet) -- General MotorsCo. (GM) - Get Report stock is increasing by 2.06% to $29.75 in late morning trading on Wednesday, after the company reached an agreement with Navistar International (NAV) - Get Report to build medium-sized cab trucks.

Navistar stock is up by 0.96% to $12.67 this morning.

The truck and engine maker will begin to manufacture medium-duty, commercial vehicles under the Chevrolet brand at its facility in Springfield, OH in 2018.

The terms of the agreement were not disclosed, but Navistar plans to invest more than $12 million to upgrade the manufacturing plant with new equipment and add 300 jobs.

"Bringing medium-duty conventional cab trucks back into the portfolio strengthens Chevrolet's commitment to providing commercial customers with more choices and one-stop shopping for a versatile lineup of trucks, vans and crossovers," Ed Peper, U.S. vice president of GM fleet and commercial sales, said in a statement.

"By working with an industry-leading company like GM, we'll be able to enhance our medium-duty product portfolio and leverage our scale and expertise in manufacturing medium-duty trucks," Bill Kozek, president of truck and parts at Navistar, added.

Separately, TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate GENERAL MOTORS CO (GM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 301.8% when compared to the same quarter one year prior, rising from $278.00 million to $1,117.00 million.
  • Net operating cash flow has significantly increased by 51.07% to $5,786.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.16%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Automobiles industry and the overall market, GENERAL MOTORS CO's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • GENERAL MOTORS CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL MOTORS CO reported lower earnings of $1.64 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($4.51 versus $1.64).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.4%. Since the same quarter one year prior, revenues slightly dropped by 3.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: GM