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Allison Transmission Powers South America's First-Ever School Buses Equipped with Automatic Transmissions

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Allison Transmission (NYSE:ALSN) has achieved a significant milestone in South America's education sector by powering the region's first-ever automatic transmission school buses in Brazil. The company is supplying its T2100 automatic transmissions with xFE™ technology to Brazilian manufacturer Volare for their school buses.

The initiative is part of Brazil's Caminho da Escola Program, with the municipality of Redenção in Ceará state being the latest recipient. The buses are specifically designed for challenging rural terrain, featuring both 4x2 and 4x4 configurations. Allison's automatic transmissions provide enhanced driver control, reduced maintenance, and improved performance compared to manual transmissions, particularly beneficial for navigating unpaved roads and difficult driving conditions.

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Positive

  • First-mover advantage in South America's school bus automatic transmission market
  • Strategic partnership with Brazilian OEM Volare (Marcopolo) for market expansion
  • Product alignment with government education infrastructure program
  • Enhanced product features offering competitive advantages over manual transmissions

Negative

  • None.

News Market Reaction 1 Alert

+2.14% News Effect

On the day this news was published, ALSN gained 2.14%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Brazil's Fleet Modernization Signals Long-Term Growth Potential in School Bus Market

INDIANAPOLIS, Aug. 5, 2025 /PRNewswire/ -- Allison Transmission, a global leader in propulsion technology, is supporting Brazil's modernization of student transportation through the delivery of microbuses from Brazilian OEM Volare, a Marcopolo South America business division. The buses are equipped with Allison's T2100 automatic transmissions with extra fuel efficiency (xFE™). In collaboration with the National Fund for Educational Development (FNDE), these vehicles represent the first school buses with fully automatic transmissions in South America.

Redenção, a municipality in the state of Ceará, is the latest recipient of the 4x4 Volare school buses featuring Allison's transmissions. The effort across several Brazilian states is part of the Caminho da Escola Program, which aims to provide public school students with access to safer and more reliable transportation. These buses ensure that students who travel long distances on unpaved rural roads have daily access to educational institutions.

"Education in the municipality of Redenção has already faced major challenges. There was a time when children were transported to school on a truck with benches in the back," said Jane Cleia Pereira da Costa, Redenção's Municipal Secretary of Education. "But with these modern school buses, the investment made in infrastructure is ensuring that our children commute to and from school with comfort and quality, which contributes to a more promising future." 

Volare buses, available in both 4x2 and 4x4 configurations, are engineered for rough terrain that is common in Brazil's North and Northeast. Allison's fully automatic transmissions eliminate the need for manual gear shifts, simplifying operation on roads with mud, gravel, or steep inclines. Drivers report less physical strain and greater control, particularly in challenging driving conditions.

"Allison is proud to offer solutions that are fully aligned with the FNDE's Caminho da Escola program objectives, ensuring students have access to school buses that are on time, high quality and comfortable," said Gabriel Ruggiero, Regional Director of Operations for South America at Allison Transmission.

Allison Automatics use a torque converter to deliver continuous power and offer a smooth driving experience. They eliminate torque interruptions when a driver shifts gears, which occur with manual and automated manual transmissions (AMTs). The Allison fully automatic transmission's design provides superior performance, reduced maintenance and greater driver control.

"I've had a driver's license for 30 years, but I've never driven such a good vehicle," said José de Souza, a school bus driver. "If it was already a pleasure to work, now it's much better. With the automatic transmission I feel more confident. With the manual transmission, it's not like that; sometimes you can miss a gear in a bad place, which doesn't happen with the automatic transmission." 

For more information about Allison Transmission's school bus propulsion solutions and hear directly from the impacted drivers and students, visit AllisonTransmission.com. or see the video.

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 vehicles (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining, construction and agriculture) 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.

Allison Transmission is supporting Brazil’s modernization of student transportation through the delivery of microbuses from Brazilian OEM Volare, a Marcopolo South America business division.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/allison-transmission-powers-south-americas-first-ever-school-buses-equipped-with-automatic-transmissions-302522511.html

SOURCE Allison Transmission, Inc.

FAQ

What type of automatic transmission is Allison providing for Brazilian school buses?

Allison is providing their T2100 automatic transmissions with xFE™ technology for the Brazilian school buses manufactured by Volare.

Where are Allison's automatic transmission school buses first being deployed in Brazil?

The automatic transmission school buses are being deployed in Redenção, a municipality in the state of Ceará, as part of the Caminho da Escola Program.

What are the key benefits of Allison's automatic transmissions for school buses?

The key benefits include continuous power delivery, smoother driving experience, reduced maintenance, greater driver control, and improved performance on challenging terrain like mud, gravel, or steep inclines.

What configurations are available for the Volare school buses with Allison transmissions?

The Volare school buses equipped with Allison transmissions are available in both 4x2 and 4x4 configurations, specifically engineered for rough terrain common in Brazil's North and Northeast regions.

How does this initiative impact Brazil's education system?

The initiative provides safer and more reliable transportation for public school students who travel long distances on unpaved rural roads, ensuring better access to educational institutions.
Allison Transmission Hldgs Inc

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