The commercial powertrain landscape is changing. Allison Transmission is acquiring Dana’s off-highway business. The $2.7 billion deal, announced June 11 and expected to close later this year, will expand Allison’s commercial-duty powertrain technology portfolio.
For fleet managers, particularly those in vocational sectors such as construction, mining, and agriculture, this acquisition creates a strategic alignment between two key industry suppliers. Allison, already a dominant force in on-highway transmissions, will now integrate Dana’s off-highway drivetrain and propulsion technologies, including axles and driveshafts for off-highway operations.
“This acquisition marks a transformative milestone in our commitment to empowering our current and future customers with propulsion and drivetrain solutions that improve the way the world works,” David Graziosi, Allison chair and CEO, said. “We look forward to harnessing this momentum to increase value for all of our stakeholders worldwide.”
The acquisition will expand Allison’s customer base and mature alternative-propulsion technologies for early-adopting off-highway markets. This expansion positions Allison as a more comprehensive global powertrain provider, capable of offering more integrated solutions across various commercial-duty applications.
Both companies offer a mix of traditional powertrain solutions, including axles and driveshafts for vehicles powered by conventional, hybrid, and electric engines. Dana’s off-highway business operates in 25 countries.
From Dana’s perspective, the sale is a continuation of its cost-reduction and strategic simplification efforts it announced in 2024. By divesting its off-highway assets following the earlier sale of its European hydraulics business, Dana can concentrate its resources on the on-highway markets and continue developing alternative technologies.
“Dana’s off-highway business has long been committed to delivering innovative solutions for off-highway applications, and we are confident that under Allison’s ownership, the team will be well-positioned to continue that legacy,” R. Bruce McDonald, Dana chair and CEO, said. “This agreement represents a strategic opportunity to ensure the ongoing success of the business while allowing Dana to focus on our core priorities. We look forward to seeing the off-highway business thrive under Allison’s leadership.”
Read more about the deal from Sara Jensen, executive editor of Power & Motion, a FleetOwner affiliate and Endeavor Business Media publication.
