Allison contract for JLTV transmission extended
Indianapolis-based Allison Transmission (NYSE: ALSN) will continue to be a supplier for the U.S. Army’s Joint Light Tactical Vehicle as production of the JLTV moves to the AM General manufacturing plant in Mishawaka. Allison has provided transmissions for the armored vehicle since its introduction in 2015.
Since its inception, the vehicle was manufactured by Oshkosh Defense, a subsidiary of Oshkosh Corp. (NYSE: OSK) in Wisconsin. In February, the Department of Defense announced South Bend-based AM General was awarded the contract, which could be worth as much as $8.6 billion production over 10 years.
“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.”
Allison says it has provided more than 19,000 transmissions for the JLTVs that are already in service. It will continue to deliver transmissions as production moves to northern Indiana. AM General is required to deliver its first units within 18 months of the contract award.
The JLTV is used by all branches of the U.S. military, as well as allied forces around the world. Allison says the Pentagon’s acquisition plan forecasts more than 55,000 JLTVs over the next two decades.