Allison Transmission is the world's largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its core products serve vocational end markets — refuse trucks, construction equipment, fire and emergency vehicles, buses, and distribution trucks — where vehicles operate in stop-and-go conditions. Allison argues that fully automatic transmissions deliver better fuel efficiency, lower maintenance costs, and easier operation compared to manual transmissions in these applications. Allison sells primarily to OEMs who install Allison transmissions in their vehicles; end users often request Allison by name, giving the company pull-through demand beyond the OEM relationship. In North America, over 90% of on-highway unit volume is covered by long-term agreements with OEMs that include annual price increases and commodity cost pass-throughs. Allison also supplies transmissions for U.S. military tracked and wheeled vehicles and generates recurring revenue from aftermarket parts, fluids, and remanufactured transmissions through a global network of roughly 1,500 distributors and dealers. In January 2026, Allison acquired Dana's Off-Highway Drive & Motion Systems business for ~$2.7B, adding axles, gearboxes, and drivetrain systems for construction, agriculture, mining, and material handling markets — roughly doubling Allison's revenue scale. The combined company now reports two segments: the legacy Allison Transmission business and the new Allison Off-Highway Drive & Motion Systems segment. Growth priorities include expanding automatic transmission penetration outside North America, growing the defense business internationally, and realizing $120M in annual run-rate synergies from the Dana acquisition.