The dispute reached a boiling point early this year when the supplier, Allison’s sole supplier of bonded piston seals, threatened to stop shipping.
The recession decimated Indiana’s auto-parts makers, but many other manufacturers in the state survived. After a year
adrift in the recession, they see signs of land ahead.
Though plagued by debt, Allison Transmission recently plowed millions of dollars into experimental technology that could lead
to new products.
Local manufacturing stalwart Allison Transmission will have to restructure its more than $4 billion in debt or further cut
expenses if it’s going to weather the recession.
As struggling General Motors Corp. tries to raise cash by unloading Allison Transmission, the fate of the city’s third-largest
manufacturer hangs in the balance. But analysts say its market dominance, strong management team and abundance of private
equity could spare it the fate of other auto plants here.