General Motors will sell its Allison Transmission unit that makes automatic gearboxes for commercial vehicles to private equity investors for 5.6 billion dollars, the parties said Thursday.
The Carlyle Group and Canadian-based Onex Corporation agreed to buy "substantially all" of Allison, including seven manufacturing facilities in Indianapolis, Indiana, and its world-wide distribution network and sales offices, a joint statement said.
GM will keep a production facility in Baltimore, Maryland, for conventional and hybrid transmissions used in GM's retail pickup trucks and sport utility vehicles.
"This is another important step to strengthen our liquidity and provide resources to support our heavy investments in new products and technology," said Rick Wagoner, GM chairman and chief executive.