UAW: GM out to sell Allison Transmission division

[Perian]

Link: http://www.freep.com/apps/pbcs.dll/a...608020342/1014

UAW says GM is out to sell Allison

Company denies it plans to unload transmission unit

BY MICHAEL ELLIS - FREE PRESS BUSINESS WRITER

General Motors Corp. is assessing the value of its Allison Transmission division, a move that the UAW local in Indianapolis said is a step toward selling off the business.

UAW Local 933 in Indianapolis, which represents thousands of workers at Allison, handed out flyers to members on Monday that said: "GM is in the process of determining a value for Allison as a first step in seeking a buyer."

GM, which has sold many of its assets over the past year to raise cash for its restructuring, said it is not currently in any discussions to sell Allison.

"There's no proposal on the table, there's no transaction on the table, there's no discussion going on. It's purely an internal assessment going on right now," GM spokeswoman Toni Simonetti said.

The assessment will develop a set of separate financial statements on Allison, Simonetti said. GM doesn't currently release financial information on Allison, but people inside and outside GM say it is highly profitable.

"We're in the process of creating a set of stand-alone financials, and I think that has created quite a bit of buzz locally," Simonetti said.

[88Fiero]

The best trans in the world. I think that woud be a dumb move.

[Raskolnikov]

Amen to that. We provide the Corporation A LOT of income every year.
Long term, it would be better to hold onto us.

[SuperSS27]

Stupid UAW creating trying to create more problems. Why would GM get rid of Allison? That would be just plain stupid. Maybe they (UAW) are just jumpy because they know whats coming in november.....

[soloyosh]

Originally Posted by SuperSS27

Why would GM get rid of Allison? That would be just plain stupid.

And GM got where they are at now because of smart decisions?

[Lewie]

Does Allison sell transmissions to other manufacturers?

[rsbaker]

Originally Posted by 88Fiero

The best trans in the world. I think that woud be a dumb move.

I agree!

[02Trailblazerls]

GM squeezes Allison a lot, but that transmission gives GM trucks an advantage.

I'd say keep her, but let it branch out to supply competitors. Who would complain (other than GM and Ford) if you can get a Cummins with an allison.

[asim]

Originally Posted by 88Fiero

The best trans in the world. I think that woud be a dumb move.

I agree, they ARE great transmissions, I don't see why they should sell them.

[2007CTS]

Why would you sell something that is making you money, and are great transmission.

[GM2004]

GM tried to sell Allison close to 9 years ago but recieved no interest. It was only a matter of time before they tried again.

[ChevyRules]

Don't do it GM. Allison is a great asset to you that is making you money. Let alone it is the most reliable Heavy Duty transmission, you have a one up on the competition for having the Allison transmission in your trucks!

[HEVguy]

I hope they keep Allison. Allison has developed some great technology and I like what they bring to GM. They should just make them leaner, meaner, etc.!

[VibenPontiac]

While not unheard of to establish seperate financials for basic internal uses, having them developed would be required by a potential buyer of the business. That been said, if GM wanted Allison to become a complete subsidiary, rather than just a revenue center seperate books would be necessary also.

Basically there's too little information her to garner anything meaningful. But yep, GM should NOT sell Allison.

[01cavalier]

Allison is great, I would hope there is no thought of selling it off. Spinning it off would not be good either, though I do agree that letting other manufacturers purchase their transmissions would be good.