General Motors has announced it will sell its Allison Transmission commercial and military business to the private equity firms Carlyle Group and Onex Corp. The selling price is expected to be around $5.6 billion. The agreement will include seven manufacturing operations in Indianapolis along with the worldwide distribution network and sales offices. However, GM will keep a plant in Baltimore, which produces the conventional and hybrid two-mode transmissions used in GM light trucks. Currently, the Allison Transmission is an option on the Silverado 2500 HD with the Duramax Diesel engine. The transaction should be completed by the close of the third quarter, pending union and regulatory approval.

Source: (June 28, 2007). “GM to sell Allison Transmission to Carlyle Group, Onex.” Automotive News. Retrieved June 28, 2007, from www.autonews.com.