GM sells transmission unit for 5.6 billion

0 Comments | AFP, June, 2007

DETROIT, United States (AFP) — General Motors Corp. sold its large truck transmission unit for 5.6 billion dollars, the automaker said Thursday.

The automaker will hang onto one of the plants in the Allison Transmission group which produces hybrid transmissions for pick-up trucks and sports utility vehicles.

The remaining plants, which build transmissions for large commercial and military vehicles, will be sold to the Carlyle Group and Onex Corp.

"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 officer.

The transaction is expected to close as early as the third quarter of this year pending union and...