Allison Transmission: 100 Years of History in Innovation

Allison Transmission has an established history as a leader in innovation, creativity and continually pushing toward new advances in technology. From James A. Allison owning the winning racecar of the Indianapolis 500® in 1915 to building every transmission in the United States Army’s M1 Abrams Battle Tank, Allison has been dedicated to designing high-quality, reliable, durable propulsion systems.

Today, Allison propulsion solutions can be found at work in cities and rural areas around the world in a wide variety of applications. From construction and distribution to transit and off-highway applications, Allison propulsion solutions are designed and engineered to make our customers more productive, no matter the vocation. As we move to develop new solutions to support the future of electrification and beyond, we think it’s important to reflect on our history and share the story of how Allison has evolved over the past century.

James A. Allison and the Speedway Team Company

In 1915, James A. Allison founded the Speedway Team Company, the business that would eventually evolve into Allison Transmission, to support his Indianapolis 500 racing activities. Since the beginning, quality and workmanship have been the foundation of the company's business philosophy. The following quote from James Allison, which exemplifies Allison’s brand promise, hung on a sign in the shop: "Whatever leaves this shop over my name must be of the finest work possible."

The company first earned recognition during World War I, when Allison halted all activities associated with racing, canceled the Indianapolis 500 and applied Speedway Team Company’s automotive engineering expertise toward the U.S. war effort. The Speedway Team Company focused on developing high-speed crawler-type tractors for hauling artillery and battlefield equipment, aircraft engines, tank components, tank tracks, production superchargers and reduction gearboxes.

Following the war, the company was recognized by the U.S. Bureau of Aircraft Production for its Liberty aircraft engines, firmly establishing its reputation for quality. In 1920, James Allison changed the company name to Allison Engineering to align with the company’s evolution beyond racing and the Speedway. Soon after the end of World War I, Allison Engineering began producing precision reduction-gear assemblies for the nation's Liberty aircraft engines, as well as V-drive marine gears, four-cylinder generator sets and 12-cylinder marine engines. James Allison’s efforts to support the US Military during the World War I era set the stage for the company to later evolve into a leading supplier of military wheeled and tracked vehicles for the defense sector.

Following James Allison’s death in 1928, Allison Engineering Company was sold to General Motors under the stipulation that Allison headquarters remain in Indianapolis, IN for at least 10 years. To this day, Allison Transmission's headquarters and primary manufacturing base remain in Indianapolis. Allison’s progress on diesel engines proved valuable to GM, as the company had not yet ventured into the diesel engine space. GM engineers incorporated many of Allison’s design ideas into GM products for years to come.

The 20th Century Brings Continuous Growth and Innovation

1930s: Under GM, Allison Engineering Company continued to evolve. In 1937, Allison's V1710 12-cylinder liquid-cooled aircraft engine passed its 150-hour acceptance trails at Wright Field, making it the first 1,000 horsepower American engine to accomplish this task. The Allison V1710 went on to power many of the U.S. Army Air Corps' most famous fighters.

As technology continued to advance, Allison came to the realization that building engines and service parts is only a portion of the vital role they played in transportation. The complex products shipped from Allison plants also needed to be properly operated, serviced and maintained. This led Allison to create its first Customer Support channels for both military and commercial operators in 1939. Today, Allison is known for its superior customer service driven by channel partners.

1940s: Allison was again called upon to support the U.S. Army Air Corp and the nation's allied air forces during World War II, this time through its V1710s, V3420s engines and their variants. By 1943, production had climbed to 3,000 engines a month to support the war effort. Prior to Pearl Harbor, capacity had been 225 engines a month. Following the war, Allison officially entered the commercial transmission field in 1946 when the company produced a marine gear system for Detroit Diesel. Allison also introduced the first fully automatic transmissions for off-highway operations. These transmissions supported American road reconstruction, bridge building and other infrastructure improvements.

Throughout the decade, Allison introduced several transmissions designed for specific vocations. The company launched its first-generation military tank transmission, the CD-850, which was incorporated into military tracked vehicles. The first Allison "V" (angle drive) transmission was shipped to GM Truck and Coach Division in 1947. GM buses equipped with Allison transmissions transported millions of passengers throughout North America for more than 30 years.

Another important company milestone came in 1948 when Allison engineers produced the first rail transmission and installed it in a Budd Rail Car. U.S. cities including New York, Chicago and Boston utilized the aluminum Budd Rail Cars to move large numbers of commuters via railroad lines and subway systems throughout the latter half of the 20th century. Also in 1948, Allison manufactured the first transmission for mining trucks.

1950s: Allison continued to play a vital role in producing new technologies. In 1956, the Allison Division of General Motors finalized a six-speed design incorporating the Allison hydraulic retarder for Chevrolet medium-duty trucks. The company introduced a new on-highway automatic transmission, employing a four-element torque converter, six forward speeds and one reverse. GM, Ford and Dodge commercial trucks were the first to offer vehicles with this transmission. Today, Allison’s torque converter remains a key differentiator in what makes Allison Automatics the most effective, efficient, and productive commercial transmissions in the world. Allison’s patented torque converted technology enables increased performance, faster acceleration, greater operating flexibility, and virtually no vehicle rollback.

1960s: The development and manufacturing of fully automatic transmissions for commercial and military vehicles progressed further. Allison recognized that larger, off-highway trucks required more powerful propulsion systems, and upgraded existing transmissions for this vocation. Allison introduced a new four-speed AT540, the first automatic transmission for medium-duty trucks. Off-highway trucks played a major role in mining, infrastructure expansion and urban development. Allison Transmission also continued to expand its market share in the U.S. military and grew its presence among Allied forces after receiving a $44 million U.S./Federal Republic of Germany Main Battle Tank Program Award.

1970s: A merger with Detroit Diesel Engine formed the Detroit Diesel Allison Division. Allison manufactured the AT 540, an automatic transmission specifically developed for vehicles in the weight class immediately above passenger cars. Based on the design of this AT Transmission, a heavier medium-duty transmission was also introduced. These two transmissions went on to power thousands of passenger cars and trucks throughout North America. Allison hit a major milestone when the fully automatic transmission was accepted as the standard powertrain for all trucks by the U.S. Army. Allison also introduced the "V" 730™, the first new transit coach transmission since 1950. Hundreds of thousands of these transmissions powered city buses throughout the U.S.

1980s: Allison launched the HT 747™ transmission, a first of its kind, built for articulated city buses. Soon after, Allison also unveiled the CLT9880™ transmission to be used in the largest off-highway mechanical drive trucks in the world for use in the production of oil and natural gas, and later, the DP-8962™ transmission was introduced for use in coal hauling vehicles. Finally, the AT 542™ transmission was released for Class A motor homes. Variations of this transmission still power the majority of motor homes in North America.

1990s: After a phased introduction in 1991, Allison’s third-generation product line, the World Transmission™ (WT), was launched broadly as a highly competitive product line not only for Allison's established markets in the United States, but also in Europe, the Asia Pacific Rim and Latin America. Now known as the 3000 and 4000 series transmissions, the WT was manufactured in James A. Allison’s hometown of Indianapolis.

Allison embarked on what would become the GM / Allison hybrid bus program. A scaled-down version of what we know today as the EP40/50 transmission was incorporated into Chevrolet, Cadillac and GMC products. In 1999, the GM and Allison joint hybrid bus program was demonstrated for the New York City Transit Authority, marking a monumental first step in the development of electric vehicles. In addition, the company opened the Allison Electric Drive Technology Development Center, a 76,000-square-foot facility designed to advance electric hybrid technology.

Allison Moves Toward a Future of Electrification

In 2003, Allison manufactured the first EP 40™/EP 50™ commercial hybrid bus powertrains. Today, with more than 9,000 units on the road, the H 40/50 propulsion system has accumulated more than 2.6 billion miles of proven and reliable operation, saving more than 305 million gallons of diesel fuel and eliminating more than 3 million metric tons of CO2 emissions from our atmosphere.

After being acquired by The Carlyle Group and Onex Corporation in 2007, Allison Transmission named Lawrence E. Dewey Chairman and CEO. He vowed to lead the company by continuing to expand global market leadership, increase emerging market penetration and focus on new technologies and product development. During a visit to Allison headquarters in Indianapolis in 2011, President Barack Obama recognized the company as a leader in hybrid technology. In 2012, Allison Transmission Holdings Inc. (ALSN) became a public company.

In recent years, Allison has been investing extensively in electrification. The company has made approximately $250 million in direct investments to advance electrified propulsion technology in the last three years alone. Allison now has fully-funded, state-of-the-art and proprietary manufacturing and development infrastructure in place, including a recently completed, 110,000 square-foot electric axle development and manufacturing facility in Auburn Hills, Michigan, and a newly expanded Vehicle Electrification + Environmental Test (VE+ET) Center in Indianapolis. In 2022, Allison will open the Innovation Center, its latest state-of-the-art facility to support collaboration, digital engineering and simulation technology to advance Allison’s vision to Improve the Way the World Works.

Allison has introduced several electric and hybrid solutions to address the needs of customers as they evaluate EV capabilities and the ever-evolving market. In 2020, the company announced the Allison eGen brand of electric hybrid and fully electric propulsion solutions following nearly two decades of experience in full system development and integration. Allison’s portfolio of hybrid and electric solutions are designed to connect and work seamlessly with all components of the vehicle to improve performance, efficiency, fuel economy and uptime. The first product introduced in the portfolio was the eGen Flex™ electric hybrid solution for transit buses. The eGen Flex takes the proven H 40/50 electric hybrid system technology and enhances it with pure electric operation for up to 10 miles. This alleviates the need for expensive and complex capital infrastructure, while providing zero emissions in the areas that need it most, such as outside schools, inside busy bus depots or in dense pedestrian areas. Geofencing technology is used to switch off the engine so the bus runs exclusively on battery power, which includes the operation of accessories used for heating, ventilation and cooling.

The second product added to the eGen portfolio was the eGen Power™ 100D e-Axle, one of the most powerful and fully integrated e-Axle systems in the world for heavy-duty trucks, such as 6x2 tractors. Designed to replace traditional powertrain systems, it features multiple electric motors and a two-speed transmission integrated into the central housing, facilitating a high starting gradeability, increased top speed and superior efficiency.

Allison understands that there is no one-size-fits-all product solution in electrification. Following the launch of the eGen Power 100D, the company concluded that other variants of the e-axle were needed to address additional market segments. This led to the launch of the eGen Power 130D, specifically designed for the European and Asia Pacific markets where many commercial vehicles require a heavier 13 tonne gross axle weight rating. Allison further expanded the eGen Power family of products by introducing the eGen Power 100S, developed to address the needs of heavy duty 6x4 tractors and heavy-duty straight trucks, as well as medium-duty trucks and school bus applications.

Conventional Market Growth Remains a Priority

While other companies may be pulling away from the conventional market, Allison understands that electric vehicle technology will need to evolve significantly before it can fully support medium- and heavy-duty trucks and buses and conventional solutions will still be necessary for years to come. Allison Automatics offer an ideal combination of economy and efficiency, enabling customers to optimize their energy source.

As an example of its continued innovation, Allison introduced a new regional haul transmission in 2020. The Allison 3414 Regional Haul Series™ is an uprated variant of Allison’s proven and well-known 3000 Series™ fully automatic transmission, designed to meet the higher engine torque requirements of the Class 8 Tractor market. The 3414 RHS provides 25% faster acceleration when compared to other Automated Manual Transmissions (AMT). It is also considered the lightest transmission in the segment at up to 11% lighter than the next competitive AMT.

Another example of growth in the conventional market is Allison’s new 9-speed transmission. The 9-speed, a variant of its proven 2000 Series™ transmission, will provide reduced emissions, improved fuel economy and advanced start-stop capability. Drivers will enjoy improved acceleration, which could lead directly to increased productivity. When combined with Allison’s FuelSense® and xFE technologies, the 9-speed will set a new benchmark in fuel efficiency and reduced emissions, helping customers meet increasingly stringent environmental regulations around the world.

In addition to advancements in the on-highway truck market, Allison is also an industry leader in designing, engineering and manufacturing fully automatic transmissions for the energy sector. The company recently announced a next-generation hydraulic fracking transmission, the Allison FracTran, an Oil Field Series™ transmission purpose-built from the ground up to meet the unique demands of fracking. Additionally, Allison introduced an uprated variant of its proven 4000 Series™ transmission, the TerraTran, designed for off-highway applications such as mobile crane, articulated dump truck, wide-body mining dump trucks and defense vehicles.

Looking Ahead to Next-Generation Propulsion Systems

Allison is proud of our reputation for providing the most reliable, durable and valued propulsion solutions available. Due to its long-term partnerships with OEMs, body builders, dealers, and fleet customers, Allison understand the needs of end-users and design products with them in mind. With more than 1,400 Allison Authorized Distributors and Dealers around the globe, customers are never far from the products, training, service and support they demand.

One key commitment the company has made to its nearly 350 OEM partners and more than 15,000 fleet customers is to provide a conventional, electric hybrid and fully electric portfolio of propulsion solutions that support the breadth of requirements its global customers demand. In addition to evolving its conventional transmissions to meet more stringent emission and noise standards, Allison’s deep knowledge and experience across a broad range of vehicle applications and geographies allows the company to significantly progress development of end-state solutions in its electrification family of products. Allison remains committed to delivering on its Brand Promise with its next generation of propulsion systems.