Allison Transmission Inc. has said it has been notified that it will be awarded a US$62.8m US 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.

Allison says the DOE grant will further increase US capacity to manufacture hybrid propulsion systems for the commercial truck market.

“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 E. 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, Indiana.  Allison Transmission plans to collaborate with leading U.S. suppliers to produce the energy storage systems and other hybrid system components for the project.