General Motors Agrees To Sell Allison Transmission

Thursday, June 28th 2007, 8:42 am

By: News On 6

DETROIT (AP) _ General Motors Corp. said Thursday it has agreed to sell its Allison Transmission commercial and military business to The Carlyle Group and Onex Corp. for $5.6 billion.

The sale includes seven manufacturing plants in Indianapolis and its global distribution network and sales offices. A production facility in Baltimore, which produces conventional and hybrid transmissions for pickup trucks and sport utility vehicles, will remain with GM.

The Detroit automaker said the deal, expected to close as early as the third quarter of 2007 pending union and regulatory approval, provides resources to support large investments in new products and technology.