Although the General claims
"to have a strong liquidity position, with more than $20 billion in cash and marketable securities at the end of the third quarter 2006."
our magic eight ball's telling us "signs point to not enough money in the bank." That's because, according to a release out of
the RenCen some mysterious New York office(?), it looks like they're planning to offload their in-house manufacturer of automatic transmissions for medium and heavy-duty commercial vehicles. The subsidiary's got 3,400 people working for it, has seven plants in Indianapolis, and sells their tranny's all over the place. So why do we think our magic ball's telling us there's not enough bank in the bank? Well, the line right before the above quoted line is:
"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..."
If it were just because they're looking to offload a business because it's not central to their mission, then why even bring up liquidity? Is it just to preempt industry journalists? Come on, we're not that smart. Just saying. Full press release is after the jump.
FOR RELEASE: 2007-01-25
General Motors Considering Strategic Options for Allison Transmission
NEW YORK — General Motors (NYSE: GM) 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.
Allison Transmission has a track record of strong business performance and is the leading seller of automatic transmissions for commercial vehicles. The company designs, engineers, manufactures and sells automatic transmissions for commercial and military vehicle applications. Headquartered in Indianapolis, Ind., Allison Transmission employs 3,400 people, has 7 plants in Indianapolis and sells automatic and powershift transmissions, product parts and support through a worldwide distribution network and sales offices throughout North America, South America, Europe, Africa and Asia.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. Founded in 1908, GM today employs about 284,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
Forward-Looking Statements: In this press release and in related comments by GM's management, we use words like "looking at," "option," "potential," "plan," "expect," "intend," "pursue," or "believe," to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but GM's actual results may differ materially due to a variety of important factors. Among other items, such factors include possible changes in our strategic plans for Allison Transmission; the response of potential acquirors, government agencies, suppliers, customers, and other participants in the industry to our strategic choices; our ability to maintain adequate liquidity and financing sources including an appropriate level of debt; and general economic conditions. Our most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about some of these factors, which may be revised or supplemented in future reports to the SEC on those forms.
This One's for Cadillacs: GM to Launch New Hydromatic Tranny [internal]