PHOTOGLOU
01-25-2007, 09:42 AM
GM considers sale of Allison Transmission
The No. 1 automaker says it is in the process of looking at strategic options for the sale of the subsidiary unit.
January 25 2007: 11:59 AM EST
DETROIT (Reuters) -- In an effort to boost liquidity, General Motors Corp. Thursday said it is considering strategic options for subsidiary Allison Transmission, including a possible sale.
The world's largest automaker, which lost $10.6 billion in 2005 and about $3 billion in the first three quarters of 2006, is in the middle of a restructuring effort that focuses on cutting costs and improving cash flow.
Shares of GM (up $0.49 to $33.23, Charts) rose 1.5 percent in early trading on the New York Stock Exchange.
"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 said in a statement.
Indianapolis-based Allison makes transmissions and hybrid propulsion systems for commercial trucks and buses and military vehicles. It employs more than 4,000 workers.
GM slashed more than 34,000 jobs in 2006 and plans to close 12 North American plants through 2008.
GM and DaimlerChrysler's (down $1.65 to $63.17, Charts) Chrysler Group are expected to post losses in the fourth quarter. Troubled automaker Ford (up $0.17 to $8.37, Charts) posted a record annual loss in company history Thursday.
The No. 1 automaker says it is in the process of looking at strategic options for the sale of the subsidiary unit.
January 25 2007: 11:59 AM EST
DETROIT (Reuters) -- In an effort to boost liquidity, General Motors Corp. Thursday said it is considering strategic options for subsidiary Allison Transmission, including a possible sale.
The world's largest automaker, which lost $10.6 billion in 2005 and about $3 billion in the first three quarters of 2006, is in the middle of a restructuring effort that focuses on cutting costs and improving cash flow.
Shares of GM (up $0.49 to $33.23, Charts) rose 1.5 percent in early trading on the New York Stock Exchange.
"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 said in a statement.
Indianapolis-based Allison makes transmissions and hybrid propulsion systems for commercial trucks and buses and military vehicles. It employs more than 4,000 workers.
GM slashed more than 34,000 jobs in 2006 and plans to close 12 North American plants through 2008.
GM and DaimlerChrysler's (down $1.65 to $63.17, Charts) Chrysler Group are expected to post losses in the fourth quarter. Troubled automaker Ford (up $0.17 to $8.37, Charts) posted a record annual loss in company history Thursday.