General Motors has agreed to sell Allison Transmission, an Indianapolis-based maker of transmissions for commercial trucks and military vehicles, to two private-equity firms for $5.6bn.

The sale, announced on Thursday, is the latest in a series of moves by the carmaker to bolster its financial resources for investments in new vehicles and technology as part of its turnaround plan. GM is also strengthening its liquidity ahead of potentially disruptive talks on new labour contracts with the United Auto Workers union later this year.