General Motors announced that it will sell its Allison Transmission business to Carlyle Group and Onex Corp. for about $5.6 billion, The Wall Street Journal reported.
"This is another important step to strengthen our liquidity and provide resources to support our heavy investments in new products and technology," said Rick Wagoner, GM's chairman and chief executive.
GM's move to sell Allison is part of the restructuring of its unprofitable North American operations.
Allison makes transmissions for sale to heavy-truck customers such as Freightliner. GM acquired Allison in 1929.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
Wow, that's big news. Isn't that what GM is famous for, building amazing Transmissions? I seriously would have cut GMC before selling this off.
"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net
What the hell? Allisons are knows for being the best transmissions put into vehicles.. holy @!#$ that was stupid. They better be coming out with something twice as good for christs sake.
1983 Camaro Z28
It doesn't say that they won't still use the Allison, they just sold it off.
I wouldn't venture to say that GM builds amazing transmissions at all... That's all Allison's doing.
Not a very smart move if you ask me.
Quote:
Allison makes transmissions for sale to heavy-truck customers such as Freightliner. GM acquired Allison in 1929.
Interesting side note Frieghtliner is owned by DaimlerChrysler(soon to be Daimler).
Quote:
I wouldn't venture to say that GM builds amazing transmissions at all
Then how come so many people use GM automatics in their hot rod or street rod or drag race vehicles? If they weren't bulletproof transmissions people wouldn't use them.
Yes! Cummins with an Alison!! There will be the bulletproof truck coming soon!
my guess is its cheaper to buy the compelted transmission from someone else than deal with the vbusiness of making them themselves.
My car may run 18s, but I can do your taxes in 10 seconds flat.
JBO lube - they would never have enough in stock and we'd never see RodimusPrime again
Ok folks, heres an inside scoop...I work for RTS the largest Allison transmission rebuilder in the southeaster US. The sale isnt as simple as it seems. GM cannot just up and sell Allison, because it has military contracts. The sale will have to be approved by the department of defense. GM tried to do this many years back, and was denied because of its military contracts.
And as far as then being the best..the newer "world" series are the absolute best in the world...however they are also the biggest pains in the ass EVER. How about every transmission having a serial number like a car has a VIN...by going onto a special part of the Allison transmission website we can tell every detail about a unit by its serial number...model, part #, wiring set-up, gear ratios, build date, origionalk purchaser, etc. A single transmission model can have over 40 different configurations depending on Chassis(Mack, Freightliner,,etc) engine, application(rescue, refuse, etc)...
Now just imagine what working on them is like...
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Spike J wrote:
Then how come so many people use GM automatics in their hot rod or street rod or drag race vehicles? If they weren't bulletproof transmissions people wouldn't use them.
GM doesn't build bulletproof transmissions. Period.
Aftermarket companies turn them into bulletproof transmissions.
Edited 1 time(s). Last edited Monday, July 02, 2007 1:38 PM
^You're kidding right?
GM's auto trannies are one of the smoothest, strongest in the industry able to handle numerous pounds of torque. They are so good that Rolls Royce used it on the their cars and so did BMW on the 7 series.
They are very robust transmissions
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
Both my parents work for Allison's in Indy. It will be sad to not see a new company car coming home every 3 months. Honestly I can't say this is a great move by GM other than it's quick cash for them to help their turnaround. Allison was a very profitable division of GM simply because no one else in the world could build a heavy duty automatic like them. Pretty much every single automatic you see in large vehicles from buses to fire engines to big rigs use an Allison transmission, so they pretty much had a monopoly on the entire market. And yes, they are bullitproof, which is why nobody else can beat them at what they make. The smallest thing they've ever gone into though are some of the higher end Chevy and GMC dualies.
Update from GM... .
General Motors Corp. (NYSE:GM) today announced that it has completed the sale of its Allison Transmission commercial and military business to The Carlyle Group and Onex Corporation for approximately $5.6 billion.
The company expects to use the funds to strengthen liquidity and support heavy investments in new products and technology, such as its continued energy diversity initiatives.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
Machzel08 (Teh Jew) wrote:my guess is its cheaper to buy the compelted transmission from someone else than deal with the vbusiness of making them themselves.
Bullseye.
1989 Z24 Convertible - Dust Covered
2006 tC - Dust Covered, but driven more
Carlyle... Isn't that the new Chrysler? Woo-Hoo! Helloooo industrial-strength Torque-Flites!
Go beyond the "bolt-on".
Interesting. IMO Allison makes one hell of a transmission! I have seen them take some nasty abuse.
Mr.Goodwrench-G.T. wrote:^You're kidding right?
GM's auto trannies are one of the smoothest, strongest in the industry able to handle numerous pounds of torque. They are so good that Rolls Royce used it on the their cars and so did BMW on the 7 series.
They are very robust transmissions
I hope you are not talking about the 4L30E. Those suck IMO, the hydrolics/valve bodys in them are a joke. I don't know one person that likes to work on those.
Carlyle Group is a military industrial investment group. That is the one the Bush family takes the heat over. Who are the biggest investors? The Bin Ladin family. Second? The Bush family. See the problem?
GM may well be able to sell to them because of their military investments already in existance. That doesn't make it a good move.
If Allison was profitable they should keep it in favour of ditching something that isn't making money. GM is bleeding cash somewhere, they should find and stitch the wound.
That said, allison makes good trannjies but we rarely see them unless you use heavy equipment or drive truck etc.
Personally I'm a fan of Muncey trannies.
PAX
PS: This is what part of the alphabet would look like if Q and R were eliminated
- Mitch Hedberg (RIP)
Wait a minute... The Carlyle Group?
You mean George W Bush and the rest of those money grubbers are getting a piece of Allison? BASTARDS!!!
GM still owns the truck part of Allison. They got rid of the commercial and military part. Allisons are still going to be used in the 2500 and 3500's.
