GM to Sell Allison Transmission Unit

General Motors Corp. said Thursday it will sell its Allison Transmission commercial and military business to two private firms for $5.6 billion.

GM will sell the unit to the Carlyle Group and Onex Corp.

Allison makes automatic transmissions for medium- and heavy-duty trucks, and its products are used in both on- and off-highway vehicles. It employs 3,400 people and has seven plants in Indianapolis, home of its headquarters.

Allison generates more than $2 billion a year in revenue.

GM will keep a production facility in Baltimore that makes conventional and hybrid transmissions used pick-up trucks and SUVs.

“This is another important step to strengthen our liquidity and provide resources to support our heavy investments in new products and technology,” Rick Wagoner, GM’s chairman and chief executive officer, said in a statement.