Allison Transmission Investing $400M In Indiana Growth, Innovation

Planned growth of the company’s core businesses, innovation and vehicle testing center will bring more than 300 jobs to central Indiana.

Allison Transmission, a global manufacturer of propulsion solutions for medium- and heavy-duty commercial vehicles, will invest more than $400 million in Indiana, creating more than 300 new jobs through 2020. As part of these expansion plans, the company broke ground on its new Innovation Center in Indianapolis today.

Allison Transmission
A rendering of the Allison Transmission Innovation Center.

“The Innovation Center will consolidate our product engineering groups and facilitate internal and external collaboration for technology and product co-development,” said David Graziosi, president and CEO of Allison Transmission. “The concepts being generated and simulated in this state-of-the-art facility will allow us to bring new technology and products to market more efficiently and faster that add value to our customers, partners and suppliers. All of this was made possible because of a great partnership with the state of Indiana, city of Indianapolis and town of Speedway.”

The Innovation Center, which is expected to be operational in 2021, will feature expanded and unique virtual and physical system simulation, as well as development and validation capabilities to support customers, partners and supplier relationships. This includes regulatory compliance simulation, as well as broader collaboration on future technology and product initiatives. Allison will construct and equip the 95,000-square-foot facility next to its west side Indianapolis headquarters at the corner of 10th Street and Cossell Road. Investment in the new Innovation Center supports Allison’s commitment to developing advancements for alternative fuel and electric vehicles.

Allison Transmission’s investment in the region will also include a new Vehicle Environmental Test (VET) facility in Indianapolis. The VET, which is expected to be operational by 2020, will include two environmental chambers capable of simulating temperature extremes, altitude and on-road conditions that will allow testing for regulatory compliance, on-board diagnostic development and performance improvements for vehicle optimization.

Allison Transmission employs 2,900 associates worldwide including approximately 2,600 in Indiana. The company plans to add more than 300 new employees, across the VET, Innovation Center and its core business.

“Allison Transmission has deep roots in Indiana, and I couldn’t be more excited about the company’s continued commitment to driving innovation right here at home in the heart of the heartland,” said Governor Eric J. Holcomb. “The increased investment we’re celebrating today makes Allison, our state and our people well-positioned for future growth. I’m confident that as a global player in Indiana’s high-tech success, Allison will continue to lead the way and provide more quality career opportunities for future generations of Hoosiers.”

The Indiana Economic Development Corporation (IEDC) offered Allison Transmission up to $7 million in conditional tax credits and up to $50,000 in conditional training grants based on the company’s plans to expand and invest in innovation in Indiana. These tax credits are performance-based, so until employees are hired, the company is not eligible to claim incentives. The city of Indianapolis and the town of Speedway also support the project.

“Allison Transmission has been a global leader in innovation, advanced manufacturing and technology for more than 100 years,” said Indianapolis Mayor Joe Hogsett. “This expansion further solidifies the imprint Allison has made on Indianapolis – and will continue to make for generations to come – attracting top talent for good-paying jobs right here on the west side of our city.”

With this investment, Allison’s goal is to expand its position as a leading innovator in commercial vehicle propulsion technology capable of providing a full-range of differentiated propulsion solutions for its customers. As the company’s propulsion solutions strategy is executed, the Innovation Center will become a venue to showcase the company’s technology and innovation leadership.

“Allison Transmission has been a vital part of our community since our founding and we are excited to see this partnership continue to grow,” said Town of Speedway Councilor Jason DeLisle. “The Innovation Center will bring talented employees, groundbreaking opportunities, and recognition to what is already a rich and prolific history between Speedway and Allison.”

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