Allison Transmission Selected to Equip AM General’s A2 Version of the Joint Light Tactical Vehicle

Rhea-AI Summary

Allison Transmission has secured a follow-on contract from the U.S. Army for its Allison 2500 Specialty Series™ transmission for the JLTV A2 version. This follows the successful use of over 19,000 units since 2015. The contract was awarded on February 9, 2023, with deliveries expected in approximately 18 months. The Army's acquisition plan anticipates over 55,000 JLTV A1 & A2 vehicles over the next 20 years, with international orders expanding the market. The company emphasizes fuel efficiency and combat effectiveness, marking continued confidence in its products.

Positive

• Follow-on contract from U.S. Army for JLTV A2 version indicates strong demand.
• Proven performance of over 19,000 transmissions builds credibility.
• Projected acquisition of 55,000 JLTV A1 & A2 vehicles confirms long-term revenue potential.
• International orders enhance market presence and diversification.

Negative

• None.

The U.S. Army’s follow-on contract specified Allison automatic transmissions based on their proven performance since the introduction of the JLTV A1 in 2015.

INDIANAPOLIS--(BUSINESS WIRE)-- Allison Transmission, a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions for tactical wheeled and tracked defense vehicles will provide the Allison 2500 Specialty Series™ (SP) transmission for AM General’s A2 version of the Joint Light Tactical Vehicle (JLTV). The JLTV is used by the U.S. Army, Navy, Marine Corps and Air Force in addition to allied forces around the world.

Allison has provided the 2500 Specialty Series™ (SP) transmission for the JLTV since the first version (A1) began production in 2015. (Photo: Business Wire)

The JLTV is designed to operate in extreme environmental conditions, softer soil, and provide never before achieved speed, power and protected mobility. Allison has provided the 2500 SP for the JLTV since the first version (A1) began production in 2015. Based on the proven performance of the more than 19,000 transmissions, the U.S. Army continued to specify the Allison 2500 SP transmission for the JLTV A2 expected to be delivered approximately 18 months after the February 9, 2023 contract award.

“Allison is extremely proud that the 2500 SP will remain the propulsion solution of choice for the JLTV,” said Dana Pittard, Vice President, Defense Programs, Allison Transmission. “We are providing innovative propulsion solutions that meet the needs of our customer and deliver fuel efficiency technologies that offer on-the-move fuel economy improvements and anti-idle capability that optimize combat effectiveness of tactical wheeled vehicles.”

The U.S. Defense Department’s acquisition plan forecasts more than 55,000 JLTV A1 & A2 versions over the next two decades. International orders from Belgium, Montenegro, Slovenia, Lithuania, Brazil, Romania and North Macedonia have expanded the market as allies embrace the JLTV’s superior mobility, unmatched reliability and proven performance.

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 approximately 1,600 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com.

Forward-Looking Statements

This press release contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, wars and pandemics; global economic volatility; general economic and industry conditions, including the risk of recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the duration and spread of the COVID-19 pandemic, including new variants of the virus and the pace and availability of vaccines and boosters, mitigating efforts deployed by government agencies and the public at large, and the overall impact from such outbreak on economic conditions, financial market volatility and our business, including but not limited to the operations of our manufacturing and other facilities, the availability of labor, our supply chain, our distribution processes and demand for our products and the corresponding impacts to our net sales and cash flow; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including acts of war and increased trade protectionism; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; risks related to our indebtedness; and other risks and uncertainties associated with our business described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information is as of the date of this press release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations and risks related to our indebtedness.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230328005145/en/

Claire Gregory

Director, Global External Communications

Claire.Gregory@allisontransmission.com

317-694-2065

Source: Allison Transmission

FAQ

What is the significance of the recent contract awarded to Allison Transmission?

The contract for the Allison 2500 Specialty Series™ transmission for the JLTV A2 version indicates continued reliance on Allison's technology by the U.S. Army, signaling strong demand for their products.

When was the contract for the JLTV A2 version awarded to Allison Transmission?

The contract was awarded on February 9, 2023.

How many JLTV vehicles are projected to be acquired over the next two decades?

The U.S. Army's acquisition plan forecasts over 55,000 JLTV A1 and A2 versions over the next 20 years.

What advantages does the Allison 2500 SP transmission provide?

The Allison 2500 SP transmission is designed to enhance fuel efficiency, speed, power, and mobility in extreme environments.

How does Allison Transmission's contract impact investors?

The contract suggests ongoing revenue stability and growth potential, making it a positive indicator for investors in Allison Transmission.