GM selling Allison Transmission for $5.6B
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]
Reader Comments (Page 1 of 1)
F451 1:08PM (6/28/2007)
Finally, GM is starting to use its head.
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Jemeni 1:48PM (6/28/2007)
$5.6 billion for a fraction of the empire sold to private equity.
Consider that the market cap of the company is $21.68 billion as of this post...
Ed 1:27PM (6/28/2007)
5.6bn is a pretty damn nice chunk of change...
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Tool 1:34PM (6/28/2007)
Wow. GM is firing on all cylinders these days. Who would have thought that GM could pull off such a strong turnaround in such a short time? I didn't.
$5.6 billion for a piece of business that is not core is a great price and can be used in any number of areas to strengthen GM's market position.
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Wilbur 1:37PM (6/28/2007)
Carlyle group is owned by George Bush Senior and Akbar Bin Laden who is the uncle of Osama. Nice stuff.
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John 2:17PM (6/28/2007)
Not exactly Wilbur. George Bush family has a lot of money invested in the group but they are just one of a dozen people. As for the Bin Laden's, they are there as well but not as obvious as before. They do their transactions through other parties.
Jared 1:49PM (6/28/2007)
Wilbur: why don't you at least try to appear to be truthful?
The Carlyle group has over 1000 investors. Bush, Sr. has been an employee of the company. The Bin Laden investment group liquidated its holdings in the Carlyle Group in 2001.
Zippy The Chimp 2:48PM (6/28/2007)
Wow! That's 22.4 billion quarters!
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Blake 3:29PM (6/28/2007)
Good call Zippy! I'm so easily entertained sometimes...
Tyk 3:51PM (6/28/2007)
Its f*cking insane that GM has to sell off assets to finance the PAYOFF of their UAW-Delphi employees... how is a company suppose to get anywhere. That money should be used for R&D or something useful instead of lining the pockets of greedy UAW workers.
(fyi: the payoff will cost 7 billion)
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The Other Bob 9:03PM (6/28/2007)
Tyk, you should reconsider your decision not to unionize you and your fellow janitors.
pixis 7:50AM (6/29/2007)
Hasn't GM (or any domestic) tried that R&D path before about a billion times- now is the time to sell the parts and pieces - pay off the unions to go away and start with a fresh sheet of paper - of course that paper will be a private equity group- but alas - if people won't buy your products thier is nothing else to do but liquidate your company.
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