Allison Transmission, a global manufacturer of automatic transmissions, has announced plans to expand operations in the city by investing $89 million to improve its facilities, manufacturing operations, and equipment. The investment will create up to 205 new jobs by 2013.
The company has been developing and testing a new and innovative commercial duty transmission for over-the-road tractor trailers for the past several years and has recently received approval from its board of directors to begin production.
The funds invested in manufacturing operations and equipment upgrades will improve overall production capabilities and the infrastructure improvements will include re-directing and improving 10th Street to allow for additional room for expansion on the company’s campus adjacent to the town of Speedway.
Allison Transmission, which currently employs nearly 2,500 people in Indianapolis, hired 50 employees in early April. Additional positions will begin to be filled as facility upgrades are phased-in. Further hiring will continue to take place over the next two years.
Lawrence E. Dewey, Allison Transmission chairman and CEO, said, “The state of Indiana, the city of Indianapolis, the town of Speedway and the great people in this community have all been good to Allison Transmission for a very long time and we appreciate the support. We have been a long time corporate member of this community and we plan on maintaining our presence here.”
Founded in 1915 by Jim Allison, one of the original four founders of the Indianapolis Motor Speedway, Allison Transmission was purchased by the Carlyle Group and Onex Corp. in 2007 from General Motors.
To complete infrastructure work at the site that will allow for future expansion, the Indianapolis will provide $1 million in assistance to the town of Speedway. Federal transportation funds in the amount of $3.5 million will also be used for the project. Develop Indy will support the company’s application for a seven-year personal property tax abatement for approval by the Metropolitan Development Commission.
“Realigning 10th Street will give Allison Transmission the ability to continue its growth and success, both today and well into the future. However, today is also a great day for the residents and businesses in the town of Speedway,” said Scott Harris, executive director of the Speedway Redevelopment Commission. “With this investment, Allison Transmission will undoubtedly be a large part of the town of Speedway’s next 100 years. They are imbedded in our community, and Speedway is proud to be Allison’s home base.”
