INDIANAPOLIS — Allison Transmission was notified this week that it will be awarded a $62.8 million U.S. Department of Energy (DOE) American Recovery and Reinvestment Act of 2009 Grant to continue its efforts to design, develop and manufacture a cost-competitive commercial hybrid truck drive system. President Obama made the announcement Wednesday in Elkhart, Ind., during a speech in which he discussed a national investment in electric drive vehicles and component manufacturing facilities. The Allison Transmission DOE grant will further increase U.S. capacity to manufacture hybrid propulsion systems for the commercial truck market.

Allison Transmission is the leading producer of hybrid propulsion systems for the city transit bus market, a product that was also developed with support from the U.S. Department of Energy. Since 2003, Allison Transmission has produced nearly 2,300 hybrid propulsion systems for use in transit buses, which operate in 126 cities. Allison Transmission hybrid propulsion systems have accumulated more than 143 million miles in service and have saved an estimated 7.6 million gallons of fuel while preventing 75,000 metric tons of carbon dioxide from being emitted into the atmosphere.

"The successful completion and launch of the Allison Transmission Commercial Truck Hybrid Program will directly support our nation’s strategic energy goals while protecting our environment, creating new jobs and reducing our dependence on foreign oil," said Lawrence Dewey, Allison Transmission chairman and CEO. Dewey added, "Allison Transmission thanks those individuals and organizations, both public and private, who supported our efforts to obtain this DOE award."

Allison Transmission will produce its new commercial-duty truck hybrid system in Indianapolis, and plans to collaborate with leading U.S. suppliers to produce the energy storage systems and other hybrid system components for the project.