Allison Transmission Partners with Volare to Introduce South America’s First School Buses Equipped with Fully Automatic Transmissions

Rhea-AI Summary

Allison Transmission partners with Volare, Brazil's leading minibus manufacturer, to equip South America's first school buses with fully automatic transmissions. Brazil’s National Fund for Educational Development (FNDE) recently announced grants to finance 320 new buses equipped with Allison Torqmatic™ Series transmissions as part of its School Path Program, providing public school students with safer and more reliable transportation. The collaboration aims to revolutionize school transportation in Brazil, particularly in rural areas with challenging road conditions. The partnership demonstrates Allison's commitment to addressing the needs of the Brazilian market and showcasing adaptability and dedication to providing efficient and reliable propulsion solutions.

Positive

• Partnership with Volare, Brazil's leading minibus manufacturer
• Grants to finance 320 new buses equipped with Allison Torqmatic™ Series transmissions
• Revolutionizing school transportation in Brazil
• Demonstrates adaptability and dedication to providing efficient and reliable propulsion solutions

Negative

• None.

Market Research Analyst

The collaboration between Allison Transmission and Volare to equip Brazilian school buses with automatic transmissions is a strategic move that taps into the burgeoning demand for improved public transportation infrastructure in emerging markets. This partnership is indicative of Allison's broader strategy to diversify its product offerings and expand its geographical footprint beyond North America.

From a market perspective, the deal with Brazil's National Fund for Educational Development for 320 new buses signifies a substantial order that could positively influence Allison's sales figures and market share within the region. Considering the unique terrain challenges of rural Brazil, the introduction of the Torqmatic™ Series transmissions is a tailored solution that could set a precedent for future public transportation tenders in similar environments globally.

This initiative may also serve as a catalyst for further technological adoption within the South American automotive market, potentially spurring competitors to innovate and offer similar solutions. The long-term impact on Allison's brand recognition and the potential for recurring revenue through maintenance and parts could strengthen its position in international markets.

Financial Analyst

Investors should note the significance of Allison Transmission's entry into the Brazilian school bus market through its partnership with Volare. The financial implications of such a deal can be multifaceted. Initially, the revenue from the sale of 320 buses equipped with Allison's transmissions will bolster the company's short-term financials, enhancing its profitability outlook.

However, more importantly, investors should consider the long-term strategic benefits. The adoption of Allison's automatic transmissions by a federal agency like Brazil's FNDE could lead to increased market penetration and brand loyalty. This could result in a steady stream of future orders, not just from Brazil but from other countries in South America that might follow Brazil's lead in modernizing their school transportation systems.

Moreover, Allison's expansion into new markets can potentially hedge against regional economic downturns, offering a more stable and diversified revenue stream. Investors should monitor the company's operational efficiency and the execution of this international expansion for indications of sustained growth and profitability.

Automotive Industry Expert

The implementation of Allison Transmission's Torqmatic™ Series in Brazil's school buses is a significant technological advancement, particularly for vehicles operating in challenging rural terrains. The shift towards fully automatic transmissions represents a notable improvement in operational ease and safety, as drivers can focus more on navigation rather than gear changes.

Such advancements are crucial in regions like northern and northeastern Brazil, where road conditions can be unpredictable. The xFE® technology in the transmissions indicates extended fuel economy, which is a critical factor for vehicles with high usage rates like school buses. This technology could set a new standard for bus manufacturing in South America, potentially influencing future public procurement specifications and industry standards.

Furthermore, the adoption of such technology by a federal agency underscores the importance of reliable and efficient transportation for public services. It reflects a growing trend in emerging markets to invest in quality infrastructure, which could encourage further technological advancements and partnerships in the sector.

INDIANAPOLIS--(BUSINESS WIRE)-- In partnership with Volare, Brazil's leading minibus manufacturer, Allison Transmission will equip South America's first school buses with fully automatic transmissions. Brazil’s National Fund for Educational Development (FNDE), a federal agency connected to the Ministry of Education, recently announced grants to finance 320 new buses equipped with Allison Torqmatic™ Series transmissions as part of its School Path Program, which aims to provide public school students with access to safer and more reliable transportation. Allison’s entry into the Brazilian school bus market is representative of the strong growth Allison is experiencing outside of North America as a result of our strategic growth initiatives.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240207560656/en/

With the Allison fully automatic transmission, the Volare buses are easier to operate on roads with mud, gravel or sand, which is particularly common in the rural areas of northern and northeastern Brazil, where many of the buses will operate. (Photo: Business Wire)

“The introduction of Allison’s fully automatic transmissions in school buses in Brazil will be revolutionary in the progress of school transportation. This collaboration allows us to provide schools with efficient and reliable buses improving the well-being of students and drivers,” said Sidnei Vargas da Silva, Volare’s Domestic Market Business Manager.

The Volare buses, available in 4x2 and 4x4 versions, will be equipped with Allison T2100 xFE^® transmissions. The fully automatic models are easier to operate on roads with mud, gravel or sand, which is particularly common in the rural areas of northern and northeastern Brazil, where many of the Allison-equipped buses will operate. By eliminating the need for manual gear changes, drivers can maintain focus on the road ahead.

“Allison’s partnership with Volare demonstrates our commitment to addressing the needs of the Brazilian market,” said Heidi Schutte, Vice President of EMEA, APAC and South America Sales, Allison Transmission. “It showcases our adaptability and dedication to providing customers efficient and reliable propulsion solutions and our commitment to being a trusted partner in South America.”

For more information on Allison’s proven performance in school buses, please visit allisontransmission.com.

About Allison Transmission

Allison Transmission (NYSE: ALSN) is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions that Improve the Way the World Works. Allison products are used in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining and construction applications) and defense vehicles (tactical wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. With a presence in more than 150 countries, Allison has regional headquarters in the Netherlands, China and Brazil, manufacturing facilities in the USA, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. Allison also has approximately 1,600 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240207560656/en/

Claire Gregory

Director, Global External Communications

Claire.Gregory@allisontransmission.com

(317) 694-2065

Source: Allison Transmission

What is the partnership mentioned in the press release?

Allison Transmission partners with Volare, Brazil's leading minibus manufacturer.

How many new buses will be financed as part of the School Path Program?

Brazil’s National Fund for Educational Development (FNDE) announced grants to finance 320 new buses equipped with Allison Torqmatic™ Series transmissions.

What is the aim of the collaboration between Allison Transmission and Volare?

The collaboration aims to revolutionize school transportation in Brazil, particularly in rural areas with challenging road conditions.

What does the partnership demonstrate about Allison Transmission?

The partnership demonstrates Allison's commitment to addressing the needs of the Brazilian market and showcasing adaptability and dedication to providing efficient and reliable propulsion solutions.