Allison was being awarded a $62.8 million matching grant in 2009 by the US Department of Energy (DOE) to increase the United States’ capacity to manufacture cost efficient, fuel-efficient commercial-duty hybrid truck propulsion systems. (Earlier post.)

The DOE grant, which was awarded under the provisions of the American Recovery and Reinvestment Act of 2009, has enabled Allison Transmission to accelerate its plans to bring commercial-duty truck hybrid products to market in 2013.

Earlier this year, Allison Transmission signed a long-term electric motor supply agreement with Remy International. This 10-year agreement will provide Allison with Remy HVH410 electric motors to be used in the Allison Transmission Commercial Hybrid Truck Program. (Earlier post.)

Allison Transmission has been producing hybrid propulsion systems for city transit buses since 2003. Currently, nearly 3,000 buses using Allison produced hybrid systems are being operated globally. These buses had accumulated more than 192 million miles and saved 11.7 million gallons of diesel fuel resulting in the avoidance of over 116,000 metric tons of CO2 from being dispensed into the atmosphere. Fuel economy improvements from other Allison hybrid products are typically in the range of 20-30% and greater.

The new Allison Transmission commercial-duty truck products will benefit from the company’s expertise in the design, manufacture and customer support of both its fully automatic transmissions and its established city transit bus hybrid products.

Over $130 million is being invested in the renovation of this facility and the development of our new commercial hybrid truck product. We will deliver a new generation of hybrid propulsion solutions to the transportation industry.

—Allison Transmission Chairman and CEO Lawrence E. Dewey