Allison Transmission Awarded a $51 Million Contract to Support Abrams Tank Production for the U.S. Army and Internationally

Rhea-AI Summary

Allison Transmission (NYSE: ALSN) has secured a $51 million contract for the X1100-3B1 transmission to support the Abrams Main Battle Tank used by the U.S. Army and Foreign Military Sales customers. This contract signifies Allison’s growing defense sales in the Asia Pacific and Eastern Europe markets. Deliveries will commence in January 2023 and continue until March 2024. The company plans to launch new defense production programs annually over the coming years, enhancing its role in military vehicle propulsion solutions.

Positive

• Secured a $51 million contract for the X1100-3B1 transmission, enhancing revenue streams.
• Expected to launch a new defense production program annually, indicating growth potential.
• Expanding defense sales to Asia Pacific and Eastern Europe, increasing market presence.

Negative

• None.

Abrams defense sales are expanding in the Asia Pacific and Eastern European markets.

INDIANAPOLIS--(BUSINESS WIRE)-- Allison Transmission, a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions for tactical wheeled and tracked defense vehicles, and medium- and heavy-duty commercial vehicles, has been awarded a $51 million contract for the X1100-3B1 transmission and technical support for the Abrams Main Battle Tank used by the U.S. Army and Foreign Military Sales (FMS) customers.

Allison Transmission will have a new defense production program launch every year for the next several years with new contracts in the last six months for Abrams, the U.S. Army’s newest light tank (Mobile Protected Firepower), M88A3 HERCULES and India’s Future Infantry Combat Vehicle. (Photo: Business Wire)

“The Abrams is the most prevalent main battle tank in the free world, and the recent announcement of defense sales expanding to Taiwan, Australia and Poland increases its presence to eight U.S. partner nations. Allison is proud to support the U.S. Army and our global customers today and for decades to come,” said Dana Pittard, Vice President for Defense Programs, Allison Transmission.

Allison’s unique qualifications and experience with the development, testing and production of heavy-duty cross-drive transmissions have reduced risk to the U.S. Army as they’ve navigated the pandemic and unprecedented economic conditions. Allison’s innovative approach and best practices provide the Army with greater affordability to reinvest in readiness, which are benefits other manufacturers have been unable to achieve.

Deliveries and technical support under this contract will begin in January 2023 and continue through March 2024.

The Abrams tank, introduced in the early 1980s, has been the subject of continuous capability improvements throughout its service life. Similarly, Allison continues to develop innovative enhancements to meet customer demand while ensuring transmission longevity and performance.

“Allison is proud of our relationships with the U.S. Army and the world’s finest defense vehicle manufacturers. Our internal investments have led to growth in the defense end market with new contracts in the last six months for Abrams, the U.S. Army’s newest light tank (Mobile Protected Firepower), M88A3 HERCULES and India’s Future Infantry Combat Vehicle,” said Pittard. “The future is very exciting as Allison will have a new defense production program launch every year for the next several years.”

About Allison Transmission

Allison Transmission (NYSE: ALSN) is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions that Improve the Way the World Works. Allison products are used in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining and construction applications) and defense vehicles (tactical wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. With a presence in more than 150 countries, Allison has regional headquarters in the Netherlands, China and Brazil, manufacturing facilities in the USA, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. Allison also has more than 1,400 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20221214005249/en/

Claire Gregory

Director, Global External Communications

Claire.Gregory@allisontransmission.com

317-694-2065

Source: Allison Transmission

FAQ

What is the value of the new contract awarded to Allison Transmission for the Abrams tank?

The new contract awarded to Allison Transmission for the Abrams tank is valued at $51 million.

When will deliveries for the new contract for the Abrams tank begin?

Deliveries for the new contract for the Abrams tank will begin in January 2023 and continue through March 2024.

In which markets is Allison Transmission expanding its defense sales?

Allison Transmission is expanding its defense sales in the Asia Pacific and Eastern European markets.

How often does Allison plan to launch new defense production programs?

Allison plans to launch new defense production programs annually over the next several years.