Allison Transmission Possible Sale?
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From: Shelbyville, IN
Allison Transmission Possible Sale?
GM Says It May Sell Indianapolis-based Allison Transmission
Jan 25, 2007 12:23 PM
DETROIT - General Motors says it may sell its Indianapolis-based Allison Transmission division as part of its effort to raise money and focus on its core business.
GM said in a news release that "it is looking at strategic options" for the Indianapolis-based transmission unit, including a potential sale.
The world's leading automaker lost over three billion dollars in the first three quarters of 2006.
Allison Transmission has 34,000 employees and seven plants in Indianapolis. It makes and sells automatic transmissions for commercial and military vehicles.
http://www.wishtv.com/Global/story.asp?S=5989461
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We've heard this several times before. And I still think it's a bad idea. But I see why GM is probably considering it given Allisons is one of their profitable divisions and it's hard to sell a division that isn't making money. But I'd hate to see them let it go...
Jan 25, 2007 12:23 PM
DETROIT - General Motors says it may sell its Indianapolis-based Allison Transmission division as part of its effort to raise money and focus on its core business.
GM said in a news release that "it is looking at strategic options" for the Indianapolis-based transmission unit, including a potential sale.
The world's leading automaker lost over three billion dollars in the first three quarters of 2006.
Allison Transmission has 34,000 employees and seven plants in Indianapolis. It makes and sells automatic transmissions for commercial and military vehicles.
http://www.wishtv.com/Global/story.asp?S=5989461
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We've heard this several times before. And I still think it's a bad idea. But I see why GM is probably considering it given Allisons is one of their profitable divisions and it's hard to sell a division that isn't making money. But I'd hate to see them let it go...
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From: Aurora, IL
It would be a shame to see GM let that asset go, it makes me worry about the the company itself as well. My uncle had a real good job at the Cummins plant in Columbus, IN until he was laid off from their massive downsizinge years ago.
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Rumors have been flying here in Indy. One was that Cummins might be interested... That'd be interesting.
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From: Indianapolis, IN
A lot of talk has been going on about this internally, but today is the first I've really seen it go public.
Sort of a weird feeling, not knowing what might happen. Allison still sends GM/Powertrain a big check every year (pretty nice profits), so I think the asking price will not be trivial...
If this happens, maybe I'll buy a Mustang just to spite 'em...
Sort of a weird feeling, not knowing what might happen. Allison still sends GM/Powertrain a big check every year (pretty nice profits), so I think the asking price will not be trivial...
If this happens, maybe I'll buy a Mustang just to spite 'em...
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From: Ontario
And GM's tried to sell Allison many times in the past. Back in the mid-90s they almost completed a sale to ZF but it was blocked for anti-trust reasons (the two of them are about the only makers of heavy-duty automatic transmissions in the world). But a sale to Cummins would likely withstand regulatory approval.
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DETROIT - General Motors says it may sell its Indianapolis-based Allison Transmission division as part of its effort to raise money and focus on its core business.
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Cash position seems better than I woud have guessed....
GM considers sale of Indy’s Allison
By Ted Evanoff
Indianapolis Star
General Motors has completed its financial review of Allison Transmission and reaffirmed the 3,400-employee Indianapolis operation may be sold.
Last summer, the Indianapolis Star reported that the automaker began the review to figure out a sales price for the seven-plant Westside operation in the event it was put up for sale. On Thursday, GM spokeswoman Melisa Tezanos said the review has been completed. No buyers have submitted bids yet, but GM is considering strategic options including a possible sale, she said.
GM acquired the Allison operation in 1929. It was for decades one of the city’s largest employers and taxpayers. After losing $8.6 billion in 2005, GM began considering the sale of assets not considered essential to its everyday operations in cars and light trucks. Allison manufactures heavy-duty automatic transmissions for army tanks, dump trucks, school buses, garbage trucks and other large vehicles.
The completion of the financial review led GM’s finance officer in New York to release a statement Thursday morning that reaffirmed the company’s interest in shopping the operation to potential buyers. The statement says:
“General Motors today announced that it is looking at strategic options related to its Allison Transmission commercial and military operations, including a potential sale of the business. This process is another potential step in GM’s plan to improve liquidity through the assessment of strategic options for a business that is not central to GM’s mission of designing, manufacturing and selling cars and light trucks globally. GM continues to have a strong liquidity position, with more than $20 billion in cash and marketable securities at the end of the third quarter 2006.’’
By Ted Evanoff
Indianapolis Star
General Motors has completed its financial review of Allison Transmission and reaffirmed the 3,400-employee Indianapolis operation may be sold.
Last summer, the Indianapolis Star reported that the automaker began the review to figure out a sales price for the seven-plant Westside operation in the event it was put up for sale. On Thursday, GM spokeswoman Melisa Tezanos said the review has been completed. No buyers have submitted bids yet, but GM is considering strategic options including a possible sale, she said.
GM acquired the Allison operation in 1929. It was for decades one of the city’s largest employers and taxpayers. After losing $8.6 billion in 2005, GM began considering the sale of assets not considered essential to its everyday operations in cars and light trucks. Allison manufactures heavy-duty automatic transmissions for army tanks, dump trucks, school buses, garbage trucks and other large vehicles.
The completion of the financial review led GM’s finance officer in New York to release a statement Thursday morning that reaffirmed the company’s interest in shopping the operation to potential buyers. The statement says:
“General Motors today announced that it is looking at strategic options related to its Allison Transmission commercial and military operations, including a potential sale of the business. This process is another potential step in GM’s plan to improve liquidity through the assessment of strategic options for a business that is not central to GM’s mission of designing, manufacturing and selling cars and light trucks globally. GM continues to have a strong liquidity position, with more than $20 billion in cash and marketable securities at the end of the third quarter 2006.’’
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From: Ontario
That would certainly not happen. Just because they sell the division doesn't mean they wouldn't still continue to be a supplier.
Last edited by R377; Jan 26, 2007 at 03:00 PM.
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From: Michigan's left coast
I can put myself into a pretty good cash position by mortgaging my house and pulling cash advances on all of my credit cards, but that doesn't mean that I'm rich.
SharpShooter_SS,
Yea, I'd say that transmissions should be part of an automaker's "core compentencies", but hell, most of 'em nowadays just want to screw together cars. We've seen this happen at a lot of other automakers.
SharpShooter_SS,
Yea, I'd say that transmissions should be part of an automaker's "core compentencies", but hell, most of 'em nowadays just want to screw together cars. We've seen this happen at a lot of other automakers.
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Although it's all rumor, if Cummins did purchase Allison's it would put them in a much better position to compete against CAT.