GM Selling Allison Transmission Unit
General Motors Corp. (GM) said it has agreed to sell its Allison Transmission unit for $5.6 billion to a pair of private-equity firms, in an effort to focus on improving core automotive operations.
The Detroit auto maker said it has struck a preliminary agreement with Carlyle Group LP of New York and Canadian investment firm Onex Corp. Carlyle and Onex beat out Centerbridge Capital Partners among other bidders for Allison, a highly profitable unit that specializes in building transmissions for GM’s heavier trucks but also sells products to other customers.