• Jan 25, 2007
GM revealed today that it's "considering strategic options" for one of its more well known subsidiaries, Allison Transmission, which produces automatic trannies for both commerical and military sale. In boardroom-speak, that means they want to sell it off. GM's turnaround has been aided so far by its strategy of selling non-essentials like the stakeS it held in both Subaru and Suzuki, so we're not particularly surprised to see a For Sale sign on Allison.
While doing a bit of research for this post we stumbled on an entry in Wikipedia for Allison Transmission and learned some pretty interesting stuff about the company's history. It's founder, James Allison, was one of the four original businessmen who financed the construction of the Indianapolis Motor Speedway in 1909 and started up the Indy 500 in 1911. The company also got into aviation engines and was the only U.S. manufacturer to develop and produce a V12 liquid-cooled engine during WWII. Finally, Allison Transmission was one of the driving forces in developing GM's two-mode hybrid drivetrain that first saw use in commercial buses before being adapted for passenger car use.

Allison Transmission is clearly a storied old American company, so it will be very interesting to see who, if anyone, steps up to buy it.

[Source: GM]



PRESS RELEASE:

General Motors Considering Strategic Options for Allison Transmission

NEW YORK -- General Motors (NYSE: GM) today announced that it is looking at strategic options related to its Allison Transmission commercial and military operations, including a potential sale of the business. This process is another potential step in GM's plan to improve liquidity through the assessment of strategic options for a business that is not central to GM's mission of designing, manufacturing and selling cars and light trucks globally. GM continues to have a strong liquidity position, with more than $20 billion in cash and marketable securities at the end of the third quarter 2006.

Allison Transmission has a track record of strong business performance and is the leading seller of automatic transmissions for commercial vehicles. The company designs, engineers, manufactures and sells automatic transmissions for commercial and military vehicle applications. Headquartered in Indianapolis, Ind., Allison Transmission employs 3,400 people, has 7 plants in Indianapolis and sells automatic and powershift transmissions, product parts and support through a worldwide distribution network and sales offices throughout North America, South America, Europe, Africa and Asia.


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    • 1 Second Ago
  • 8 Comments
      • 8 Years Ago
      Is Allison the one that made that transmission for the Sierra Denali's? I can't remember, so if some one could clarify this would be helpful.
      • 8 Years Ago
      I believe Allison's only product in GM's light duty applications where when it was mated with the Duramax diesel in their pickups.
      • 8 Years Ago
      More and more commercial truck fleets are going for the Allison transmissions. Allison has competition with the semi automatics in the same market as well. Perhaps to much competition.
      • 8 Years Ago
      why does anyone sell something that is making money?
      companies that sell off what they deem as "core" business that is making money is like politicans telling us they will not be running for whatever office so they can "spend more time with the family".
      • 8 Years Ago
      NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!! Don't do it!!!!!! BiiiiiiG Mistake!!!
      • 8 Years Ago
      Think a Chinese company will buy it? I've actually wondered for a while how long it will be before a Chinese company attempts to scoop up Ford or buys Chrysler from Mercedes (if the spin off rumors are true). They each come with baggage, but they also have a lot of tech and design that could jump start a Chinese company's entry into the US.
      • 8 Years Ago
      they sold detroit diesel so it only makes sense. i think it is interesting to point out that it is the only profitable division of the general right now.
      • 8 Years Ago
      Probably Toyota will buy it like it did the other cast-offs. Seems short-sighted to me.