General Motors has announced that the Allison Transmission Division is being combined with GM Powertrain effective immediately.

In making the announcement, GM Chairman John F. Smith Jr. pointed out this is an internal GM reporting structure change that should not have any impact on employees in their day-to-day jobs. Also, GM said that there is no impact on Allison customers, distributors, dealers or suppliers. The Allison name and brand continue.

Lawrence E. Dewey will continue as president of Allison and will report to Thomas G. Stephens, group vice president of GM Powertrain.

Smith said is a statement: "Over the years, Allison has grown to become the world leader in the design, manufacture and sales of automatic transmissions for trucks, buses, off-road and military vehicles. Allison has a rich legacy of technological innovation, product quality and employee dedication - qualities that have made the company a world leader throughout its history. Aligning Allison with GM Powertrain, a recognized leader in the industry and one of the world's largest powertrain producers, will enhance GM's performance and competitiveness."

According to Stephens, while GM Powertrain has existed as a corporate entity since 1991, the organisation has its origins in the many automotive companies that combined forces in the early 1900s to form GM.

Stephens said: "The GM Powertrain name has a rich legacy that fits together well with Allison. Our two organisations share similar missions and visions. At GM Powertrain, we are committed to building the world's best powertrains. Allison's vision is to be the world leader in commercial-duty transmissions, hybrid-propulsion systems, and related parts and services for on-highway vehicles, military vehicles and off-highway equipment. I am confident that going forward together, the highly talented men and women of both organisations, combined with our technological innovations in product design and manufacturing systems will keep us ahead of the competition. We will maintain Allison's strong brand recognition in the marketplace and continue to serve its diverse global customer base."