Allison 4000 Series transmission now available with CARB-compliant engine

INDIANAPOLIS - Allison Transmission (NYSE:ALSN), a commercial vehicle propulsion solutions provider with $3.2 billion in annual revenue and an impressive 48% gross margin, announced Wednesday that its 4000 Series fully automatic transmission is now available with the new CARB low NOx compliant PACCAR MX-13 engine for Kenworth T880 and Peterbilt Model 567 truck models.

The pairing represents the only fully automatic transmission option compatible with the MX-13 engine that meets California Air Resources Board (CARB) compliance standards, according to the company’s press release statement.

"Integrating the Allison 4000 Series into vehicles equipped with the CARB-compliant PACCAR MX-13 engine will support efficiency and fuel economy, while still delivering on our promise of reliability and productivity," said Rohan Barua, Vice President of North America Sales, Global Channel and Aftermarket at Allison Transmission.

The 4000 Series transmission is used across multiple commercial applications including construction, energy, mining, defense and vocational trucking. It offers six or seven forward gears depending on the model configuration.

Allison’s FuelSense 2.0 technology comes standard on Kenworth T880 truck models and is available as an option on the Peterbilt Model 567. The company claims this fuel-efficiency technology can provide fuel savings of up to 6% by dynamically adjusting shift points and torque based on load and driving conditions.

The transmission utilizes Allison’s torque converter technology, which the company states multiplies engine torque to improve vehicle startability and overall productivity while maintaining lower emissions compliance.

Allison Transmission designs and manufactures propulsion solutions for commercial and defense vehicles and is headquartered in Indianapolis, Indiana. Trading at a P/E ratio of 9.93, the stock currently appears undervalued according to InvestingPro Fair Value metrics. For investors seeking deeper insights, InvestingPro offers 12 additional exclusive tips and a comprehensive Pro Research Report, available among the 1,400+ US equities covered on the platform.

In other recent news, Allison Transmission announced it has secured a multi-million dollar contract from the Ground Vehicle Systems Center for the second phase of the Next Generation Electrified Transmission program. This phase aims to enhance the eMachine and Inverter system to improve the capabilities of electrified vehicle fleets. Additionally, Allison has been selected to supply 3040 MX cross-drive transmissions for Poland’s Borsuk Infantry Fighting Vehicle program, following a Memorandum of Understanding with Poland’s Grupa Zbrojeniowa. In the transit sector, the Maryland Department of Transportation Maryland Transit Administration has chosen New Flyer buses equipped with Allison’s eGen Flex hybrid propulsion system for operations in Baltimore, slated for manufacture in 2025.

On the financial front, BofA Securities raised its price target for Allison Transmission to $79 from $74, maintaining an Underperform rating. This adjustment follows Allison’s announcement of its agreement to acquire Dana’s off-highway business, expanding its presence in various industrial markets. Meanwhile, Raymond James lowered its price target for Allison to $105 from $110, while keeping an Outperform rating, citing a challenging outlook for North American on-highway customers. These developments highlight the company’s ongoing strategic initiatives and market adjustments.

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