Obama visit highlights Allison’s drive into hybrid market

President Barack Obama will deliver remarks on energy policy today from Allison Transmission, where the company is developing a new product line for hybrid trucks.

Although a $62.8 million Department of Energy grant has sped up Allison's work, there's no broad-based program on the horizon to ensure that commercial truck buyers opt for the new technology in significant volumes. "Unfortunately for those of us in the commercial vehicle sector, there are no subsidies, which is going to be one of the challenges for the adoption rate," said Steve Tam, commercial trucking analyst at ACT Research in Columbus.

But other analysts, along with Allison, believe commercial truck hybrids are poised for significant growth. In its recent prospectus for a $750 million initial public offering, Allison cited a Frost & Sullivan forecast for 72.3 percent compound annual growth between 2010 and 2016 in heavy-duty and medium-duty trucks.

truck, bus and van market is expected to grow from 4.1 thousand units in 2009 to 222 thousand units by 2016.

What he probably won't discuss is says the hybrid transmission that it's developing will improve fuel economy by 25 percent to 35 percent in commercial trucks.

The new system that the company expects to roll out late in 2012 is one reason President Barack Obama will deliver his remarks on energy policy today from Allison's Speedway plant. A $62.8 million Department of Energy grant in 2009 sped up the company's work in hybrids. Allison is working on two new transmissions for , which is one of its selling point as it hopes to raise $750 million in an initial public offering.

is forecast to grow significantly over the next five years, and Allison Transmission one analyst Allison Transmission is developing a new transmission for a hybrid truck market that's forecast to grow significantly over the next five years.

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