General Motors announced earlier this morning that it has agreed to sell Allison Transmission to two private equity firms. The Carlyle Group and Onex Corp. will purchase both the commercial and military ends of Allison, all for the bargain price of $5.6 billion.

The plan is to sell of the firm's seven manufacturing centers throughout Indianapolis, along with the company's sale offices and a worldwide distribution complex. However, GM plans to retain its Baltimore plant to produce both regular and hybrid two-mode transmissions for it's trucks and SUVs.

Naturally, the regulators and the unions will want to have their say first, so don't expect anything solid until later in the third quarter of 2007.

[Source: Yahoo News]