Delphi agrees to supply Allison hybrid components

Allison Transmission Inc has entered into a long-term business agreement with Delphi Automotive Systems LLC. Under terms of the agreement, Delphi will supply Allison Transmission with key hybrid drive system components and energy storage systems.

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

Lawrence E Dewey, Allison Transmission chairman and chief executive officer, 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. 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.”

Earlier in 2009, Allison Transmission applied for and received a $62.8 million grant under the US Department of Energy’s American Recovery and Reinvestment Act of 2009. This grant will further increase US capacity to manufacture hybrid propulsion systems for commercial trucks.