Allison Transmission has opened a new hybrid manufacturing plant in Indianapolis, which will be capable of churning out more than 20,000 commercial-duty hybrid propulsion systems a year.

The new Allison hybrid propulsion system captures kinetic energy and later reuses the energy to propel or reaccelerate the vehicle. The recovered energy can also be used to power vehicle accessories.

"Over $130 million is being invested in the renovation of this facility and the development of our new commercial hybrid truck product," Allison Transmission Chairman and CEO Lawrence E. Dewey told a group of employees, government officials, state and local representatives and project collaborators gathered at the plant's dedication recently.

The dedication of the facility follows an August 2009 visit to Indiana by President Obama. During his visit, Obama announced that Allison was being awarded a $62.8 million matching grant by the U.S. Department of Energy to increase the U.S.' capacity to manufacture the commercial-duty hybrid truck propulsion systems.

With the DOE grant, Allison Transmission will be rolling out the truck hybrid products in 2013.

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