General Motors Corp., raising cash for new models, said it expects a gain of as much as $5.4 billion this quarter from the sale of Allison Transmission to buyout firms Carlyle Group and Onex Corp.
The sale, completed last week for $5.6 billion, may increase earnings by a range of $5.1 billion to $5.4 billion, the Detroit- based automaker said in a U.S. regulatory filing Monday.
With the Allison transaction, GM will have generated as much as $21.4 billion from asset sales since 2005, as Chief Executive Officer Rick Wagoner pays for buyouts of union workers, plant closings and development of new models.
The automaker had annual losses of $12.4 billion the past two years and has said it doesn't expect to produce money from operations this year.
GM said last month that it had $27.2 billion in cash, marketable securities and funds available from a retiree health-care fund as of June 30, an increase from $24.7 billion in March.
The automaker's shares rose 61 cents to $34.46 Monday in New York Stock Exchange composite trading.
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