GM completes $5.6 billion divestment in Allison Transmission

General Motors Corp has announced the completion of its stake divestment from Allison Transmission's commercial and military business to private equity firms, The Carlyle Group and Onex Corporation for approximately $5.6 billion.

The $2 billion Allison designs and builds commercial-duty automatic transmissions, hybrid propulsion systems and parts for trucks and buses, as well as off-highway equipment and military vehicles and claims an 80 per cent market share of all medium and heavy-duty commercial transmissions.

The sale was announced in June and includes seven manufacturing plants in Indianapolis, along with its global distribution network and sales offices. (See: GM selling Allison Transmission to Carlyle-Onex combine for $5.6 billion) A plant in Baltimore that makes conventional and hybrid transmissions for pickup trucks and sport utility vehicles, will remain with GM.

Detroit-based GM said in a statement that it would use the money to strengthen its liquidity, and support heavy investments in new products and technology, such as its continued energy diversity initiatives

Based on sales in 2006, General Motors Corp remains the world's largest automaker, as it has for the 76 years. Last year, it sold 9.1 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.

GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.