Allison Transmission and Delphi Automotive Systems have agreed to share commercial truck hybrid drive system technology.

Under a newly signed 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 combine with existing Allison Transmission products in both the city transit bus and truck markets.

Allison Transmission chairman and CEO Lawrence Dewey, said: "The agreement 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."

Allison Transmission claims to be the leading producer of hybrid drive propulsion systems for city buses. Earlier this year, it was awarded a US$62.8 m grant through the US Department of Energy American Recovery and Reinvestment Act to increase US capacity to such systems for commercial trucks.