Indianapolis-based Allison Transmission Inc. announced Monday morning that it has entered into a long-term agreement to have Michigan-based Delphi Automotive Systems Inc. supply it with hybrid drive-system components and energy-storage systems.

The terms and length of the deal were not disclosed.

Delphi parts, which are manufactured in Kokomo, will be used in Allison’s products made for the city-transit bus and truck markets, Allison said.

“The agreement we signed with Delphi Automotive puts us on a path to deliver the best performing and most economically viable truck hybrid drive solution,” Allison CEO Lawrence E. Dewey said in a prepared statement.

Under the American Recovery and Reinvestment Act of 2009, the U.S. Department of Energy earlier this year awarded Allison a $62.8 million grant to manufacture hybrid propulsion systems for commercial trucks.

Allison employs about 2,900 at its Indianapolis plant. In 2007, General Motors Corp. sold its transmission division to The Carlyle Group and Onex Corp. for $5.6 billion.