Allison Transmission signs $250M defense contract with BAE Systems
Allison Transmission Holdings, Inc. has entered into a $250 million contract with BAE Systems Hägglunds to supply 4040 MX transmissions for CV90 MkIV infantry fighting vehicles, with an option for an additional $50 million. This is the largest single tracked defense program contract in Allison's history. Production deliveries are scheduled to begin in 2028.

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Allison Transmission Holdings, Inc. has secured a $250 million contract with BAE Systems Hägglunds to supply 4040 MX transmissions for the company's CV90 MkIV infantry fighting vehicles. The agreement, formalized at the Eurosatory defense exhibition in Paris, includes an option for additional units valued at $50 million. This contract marks the largest single tracked defense program contract in Allison Transmission's history.
The CV90 MkIV program serves as the inaugural production platform for Allison's 4040 MX transmission. Production deliveries are scheduled to begin in 2028. The new 4040 MX cross-drive transmission is engineered as an evolution of the proven 3040 MX, delivering increased power ratings and updated electronic controls while maintaining the existing 3040 MX spatial footprint. This design allows for seamless integration with the vehicle's Scania engine.
Allison conducted extensive integration testing with BAE Systems Hägglunds over a two-year period to ensure the new solution is mission ready. The testing focused on validating the transmission's performance and compatibility with the CV90 MkIV platform.
Contract Details
| Aspect | Details |
|---|---|
| Contract Value | $250 million |
| Option Value | $50 million |
| Product | 4040 MX transmissions |
| Platform | CV90 MkIV infantry fighting vehicles |
| Delivery Start | 2028 |
The 4040 MX transmission is designed to provide enhanced mobility and performance for the CV90 MkIV. The updated electronic controls and increased power ratings are intended to meet the demanding requirements of modern infantry fighting vehicles.
How might this contract influence Allison Transmission's ability to secure additional defense contracts for the 4040 MX with other military vehicle manufacturers?
What are the potential financial impacts on Allison's revenue stream once production deliveries begin in 2028?
Could the success of the 4040 MX integration with the CV90 MkIV lead to upgrades for other platforms currently using the 3040 MX transmission?

























