Allison Transmission Holdings Inc. and China National Heavy Duty Truck Group Corp. Ltd. announced on April 19 they have agreed “to explore a strategic partnership to optimize fully automatic transmission technologies for the Chinese market.

"The heavy-duty truck market in China represents a major growth opportunity for Allison and we're pleased to jointly investigate ways to partner with CNHTC in this endeavor," said Allison Chairman and CEO Lawrence Dewey. "Their leadership and industry expertise are incredible assets to this collaboration."

CNHTC, also known as Sinotruk, was founded in 1935 as China's first heavy-duty truck manufacturer. Headquartered in Jinan, Shandong province, the OEM builds vehicles for a variety of applications, including construction, distribution, emergency, and mining.

"We believe fully automatic transmissions are the major development direction in many heavy-duty truck applications in China," said CNHTC Chairman Ma Chunji. "After evaluating all available torque converter automatic transmission technologies, we look forward to working with Allison and introducing their product to our customers. They are an industry leader known for impeccable quality and lifecycle value."

The companies noted that they will focus on serving the Chinese market but will also explore other opportunities. In addition to China, CNHTC has a strong presence in South America and has exported products to more than 90 countries overall. Allison transmissions are used in more than 100 countries.