General Motors is considering a possible sale of its Allison Transmission commercial and military operations, as the auto maker has been shoring up liquidity while it restructures its operations.
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According to Dow Jones, GM said it would review strategic options for the Allison Transmission operations, including a sale of the business – that follows a valuation of the division last year.
The auto maker reportedly said Allison “is not central to GM’s mission” of selling cars and light trucks.
Allison Transmission, based in Indianapolis and employing 3,400 people at seven plants, sells automatic transmissions for commercial vehicles such as heavy trucks, and military vehicles, the news agency noted.
GM spokeswoman Melisa Tezanos told Dow Jones that Allison has a “track record of strong financial performance,” but wouldn’t break out specific numbers.
A possible sale of the Allison Transmission operations follows GM’s sale of a 51% stake in financing arm GMAC, for which it expected to receive a total of $14 bn, including $10bn in 2006, the report said.
