• Jun 28th 2007 at 1:02PM
  • 7
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]

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    • 1 Second Ago
      • 8 Years Ago
      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.
      • 8 Years Ago
      Wow! That's 22.4 billion quarters!
        • 8 Years Ago
        Good call Zippy! I'm so easily entertained sometimes...
      • 8 Years Ago
      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.
      • 8 Years Ago
      5.6bn is a pretty damn nice chunk of change...
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