INDIANAPOLIS — Allison Transmission Inc., a supplier of commercial-duty fully automatic transmissions for both on- and off-highway vehicles, as well as hybrid propulsion systems for on-highway transit and coach vehicles, has entered into a long-term business agreement with Delphi Automotive Systems. Under the terms of the agreement, Delphi will supply Allison Transmission with key hybrid drive system components and energy storage systems.

Delphi’s expertise in the manufacture and integration of electronic and hybrid system components for the automotive industry will complement existing Allison Transmission product offerings in both the city transit bus and truck markets.

Lawrence Dewey, Allison Transmission chairman and CEO said, "The agreement we signed with Delphi Automotive puts us on a path to deliver the best performing and most economically viable truck hybrid drive solution." Dewey added, "The initial focus of our efforts will be directed toward the use of hybrids in the pick-up and delivery, shuttle, utility and refuse applications."

Allison Transmission is already the leading producer of hybrid drive propulsion systems for the city transit bus market with today’s EP40 and EP50 products.

Earlier this year, Allison Transmission applied for and was awarded a $62.8 million grant under the U.S. Department of Energy (DOE) American Recovery and Reinvestment Act of 2009. This grant will further increase U.S. capacity to manufacture hybrid propulsion systems for the commercial truck market.