Allison, Delphi form hybrid partnership

A new long-term business agreement between Allison Transmission and Delphi Automotive Systems aims to help both companies jointly develop more economically viable hybrid powertrains for a variety of commercial applications.

"This agreement … puts us on a path to deliver the best performing and most economically viable truck hybrid drive solution,” said Lawrence Dewey, Allison chairman & CEO. "The initial focus of our efforts will be directed toward the use of hybrids in pickup and delivery, shuttle, utility, and refuse applications.”

Under the terms of the agreement, Delphi will supply Allison Transmission with key hybrid drive system components and energy storage systems.

Allison noted it already builds hybrid drive propulsion systems for the city transit bus market with its EP40 and EP50 products. The company also expects to tap a $62.8 million grant awarded by the Dept. of Energy under the American Recovery and Reinvestment Act earlier this year to help it increase plant capacity to manufacture hybrid propulsion systems for the commercial truck market.