Industry players AxleTech and Allison Transmission made news Tuesday, as the former announced the sale of its Electric Vehicle Systems division to latter, effective immediately.
AxleTech says the transaction consists exclusively of assets, intellectual property, products, and people specifically involved in AxleTech’s advanced integrated electrification solutions. Additionally, the company says the divestiture of its advanced integrated electrification solutions enables AxleTech to focus on its core capabilities for global off-highway drivetrain applications, including aftermarket and remanufacturing, as well as on-highway aftermarket solutions.
The deal affects 5 percent of AxleTech’s global employees.
“Several years ago, we established our Electric Vehicle Systems group to develop electric vehicle solutions for on- and off-highway applications as a complement to our 100-year-old off-highway heritage. Today, thanks to the incredible job done by everyone involved, it’s time to let the advanced integrated electrification solutions enter their next phase of development and commercialization with Allison Transmission,” says Bill Gryzenia, CEO, AxleTech. “This agreement allows AxleTech to focus on what we do best – traditional powertrain and non-integrated electric solutions for the off-highway and defense industries.”
AxleTech says its core business in the commercial off-highway and defense industries, including certain non-integrated electrification solutions for off-highway and defense industries, aftermarket, and remanufacturing, will continue to operate under the ownership of The Carlyle Group.
“The advanced integrated electric vehicle systems will fit well within our electrification strategy and support our vision of being the global leader in commercial-duty electric propulsion solutions,” adds David S. Graziosi, president and CEO, Allison Transmission.
