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AxleTech divests EV systems group to Allison Transmission
AxleTech, provider of off-highway and specialty vehicle drivetrain systems and components, has sold its Electric Vehicle Systems division to Allison Transmission, effective immediately. The sale affects 5% of AxleTech’s global employee base of approximately 600 people.
The transaction consists exclusively of assets, intellectual property, products, and people specifically involved in AxleTech’s advanced integrated electrification solutions. AxleTech’s 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. “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,” said Bill Gryzenia, CEO, AxleTech. “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. 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.” “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,” said David S. Graziosi, Allison Transmission President and CEO. 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.