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Allison Transmissions plans Indianapolis hybrid facility

Allison Transmission Inc. has started renovating part of its Indianapolis factory so it can build hybrid systems for commercial vehicles.
The company says it expects to have 100 workers producing the systems.

Chris Proffitt/Eyewitness News

Indianapolis - Plowing $130 million in a largely vacant plant, Allison Transmission announced on Tuesday that it will hire 100 workers to help produce a hybrid transmission for large trucks. The US Department of Energy, using federal stimulus money, is chipping in nearly $63 million in a matching grant.

"We are happy to partner with Allison as they begin producing this hybrid electric propulsion system and create options for cleaner commercial vehicles," said Ed Owners, Department of Energy.

Production on the transmission begins in 2013. When fully operational, the plant is expected to produce more than 20,000 commercial-duty hybrid transmissions each year.

"By addressing the needs of the commercial vehicle industry for increased fuel efficiency and our country in terms of good paying jobs and a reduction in our dependence on foreign oil," said Lawrence Dewey, Allison Chairman.

Allison has been making hybrid transmissions for city transit buses with nearly 3,000 on the road today. The company claims those buses combined have saved over 11 million gallons of diesel fuel and the resulting emissions.

Allison is the latest Indiana company to win millions of dollars in energy department grants along with Remy in Pendleton and Delphi in Kokomo. For Allison, the new transmission represents what executives call a new generation of hybrid propulsion solutions for the transportation industry.

Allison says that it will start hiring workers within the year, jobs that pay an average of $60,000 per year.

Allison is working on the hybrid systems with electronics-maker Delphi Corp. of Kokomo and motor manufacturer Remy International of Anderson. All three companies received stimulus grants last August.

Allison says its hybrid system will capture kinetic energy as a vehicle slows down and later reuse the energy in reacceleration.

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