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GM to sell Allison Transmission to Carlyle Group, Onex

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GM to sell Allison Transmission to Carlyle Group, Onex
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Automotive News | June 28, 2007 - 9:38 am


General Motors said this morning it has agreed to sell its Allison Transmission commercial and military business to private equity firms Carlyle Group and Onex Corp. for about $5.6 billion.

The agreement includes seven manufacturing operations in Indianapolis and a worldwide distribution network and sales offices.

GM said it would retain a plant in Baltimore that makes conventional and hybrid two-mode transmissions used in GM’s light trucks.

The transaction is expected to close in the third quarter, pending union and regulatory approval.
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Baltimore produces the Allison 1000 5- and 6-speed autos used in the GMT 900 HDs, medium trucks and other commercial applications. The plant is already called GM Powertrain Baltimore, not Allison Transmission.

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Wow, they're going to pay $5.6 billion for Allison transmission? Cerberus only paid $7.4 billion for Chrysler group :lol:

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The plant in Baltimore was never part of Allison Transmission, so that is a moot point. The plant in Baltimore also was just recently built by GM and was placed there to absorb some of the workers who were displaced when GM shut down it's Baltimore Assembly plant which built the Chevrolet Astro Van and it's twin the GMC Safari Van.

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Baltimore produces the Allison 1000 5- and 6-speed autos used in the GMT 900 HDs, medium trucks and other commercial applications. The plant is already called GM Powertrain Baltimore, not Allison Transmission.

So these transmissions are not in jeopardy then? If they were that would be the biggest mistake GM could make, these are one of the best transmissions they make.

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Wow, they're going to pay $5.6 billion for Allison transmission? Cerberus only paid $7.4 billion for Chrysler group :lol:

:pokeowned:

this just shows that someone in GM can make some great deals to be able to sell Allison without giving up the parts of it that are most important to GM. What does the price similarity say about Chrysler.

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No I think they will still own the plants for the HD Silvy/Serria's. From what I understand. I hope they made money off Allison!

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Wow, they're going to pay $5.6 billion for Allison transmission? Cerberus only paid $7.4 billion for Chrysler group :lol:

Well, for starters, Allison is profitable..... :AH-HA_wink:

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Too bad...yeah, this deal focuses GM on it's core market, but Allison was a highly-profitable division. Hell, any RV worth its salt has an Allison, not to mention scads of other areas. I know some guys who've bought brand new dodge or ford HD/SD trucks who've scrapped the stock trans and replaced it with an allison (fools for not buying GM in the first place, but whatever).

This definitely lends credence to the stories about GM dumping their medium-duty truck lines as well. Too bad...just when the Topkick/Kodiak lines are starting to get some consumer-level exposure (thanks to Monroe Truck's pickup upfit and the Topkick's appearance in Tranformers, looking totally badass), they're ready to dump the line. If they do drop it, though, Chevy should at the very least do Silvy/Sierra 4500 and 5500 models...I'm working on a 3D rendition of what such a truck could be like, probably take a few months, but the concept looks pretty darn good in my head.

The other thing they need to do is improve their HD transmissions to take more than 23K GCWR so we can get some real competition going with Ford for top tow rating claims. Being able to tow a 25K lb gooseneck/5th wheel in a 4500/5500 truck would be sweet.

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Piece by piece, they're selling it off....

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GM has certainly become a ghost of what it was 20 years ago.

Billy Durant must be turning in his grave.

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Just write your thank you letter to the UAW for forcing GM's hand. They wouldn't need the cash if it weren't for overpriced labor. Oh well, one more step towards increased profitability.

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