GM Sells Allison Gas Turbine Division
INDIANAPOLIS (AP) _ General Motors Corp. said Wednesday it will sell its Allison Gas Turbine division to a group led by a New York investment firm that also includes members of the unit’s management.
Clayton Dubilier & Rice said it had agreed to purchase the aircraft engine maker for an undisclosed amount.
Allison Gas Turbine has four facilities in Indiana with a total work force of about 4,700. The division is operated separately from a sister company, Allison Transmission, which also is being sold by GM.
GM announced last year it would sell Gas Turbine and other non-automotive units and shift its attention to sagging car sales. GM has owned both Allison companies since 1929.
Officials said they did not expect major changes in management or the work force at the company, which will be renamed Allison Engine.
″I would assume their level of employment would remain the same as (if) they had stayed with GM,″ said Bill Hogland, GM’s executive vice president for corporate affairs.
Officials gave few specific details at a news conference of the management partners involved in the Gas Turbine sale, saying they were still negotiating final terms.
The new management will honor the current United Auto Workers contract currently covering the majority of Gas Turbine employees, said Donald Gogel, a partner at Clayton Dubilier.
″I’m looking forward to it. At first I didn’t like it, but I guess I’m excited about it,″ said Bob Woodcock, chairman of the United Auto Workers bargaining committee for Local 933, which represents more than 2,800 employees.
In the past, Gas Turbine was heavily dependent on the defense industry, selling engines used in transport planes and helicopters. With recent cuts in defense spending, it has sought to shift toward more commercial business.
Allison Gas Turbine has sales of about $700 million last year.