GM and Allison Transmission Ends Partnership After Failing to Reach License Extension

After decades of GM HD trucks using Allison Transmissions, the partnership is ending on December 31, 2025.

This news comes at a shock to many GM truck fans who think highly of Allison Transmissions durability and bought Chevrolet Silverado HD and GMC Sierra HD trucks because they were equipped with transmissions from that company.

The move will mean GM dealerships will remove advertising for Allison Transmissions and new heavy-duty trucks will not have the Allison Transmission badging starting in the Spring of 2026.

In a statement GM confirmed they ended the license aggreement and this marks the latest move for the company divesting itself from Allison Transmissions.

“We routinely refresh our products, including badging and brand collaborations.” Shad Balch, Director, Chevrolet Communications said. “The transmission itself and the truck’s performance are not changing – it’s the same 10-speed automatic we’ve offered in current and previous model years.”

Balch also added, “I can confirm the reason is simply after months of going back-and-forth we could not agree on terms to extend the agreement.”

The transmission was co-developed with Ford and put into production in 2018.

Repeated requests for comment to Allison Transmissions went unanswered over the last several days.

There was speculation at that time if Allison engineers had played a role in developing the transmission and GM repeatedly said they licensed the name. This caused some confusion amongst truck fans who could not believe that could be the case.

Now with the Allison Transmission named removed and the transmission still in use, this should clear the air.

Allison Transmission and GM’s long history

The companies have a long history and according to Allison Transmission’s website this goes back to when the company founder, James Allison, passed away.

In 1928, the Allison Engineering Company was sold to General Motors with the stipulation the company headquarters stayed in Indianapolis for at least 10 years. It is still headquartered in Indianapolis to this day.

After World War II, things got going for Allison Transmissions as it developed commercial transmissions for GM vehicles and then developed the first automatic transmission after a merger with the Detroit Diesel division.

Allison Transmissions continued to work with GM on a variety of commercial and even an electric hybrid bus program up until 2007.

Then, GM announced its plan to divest away from Allison Transmission. The Carlyle Group and Onex Corporation acquire the Allison Transmission Division for $5.6 billion, and Allison Transmission, Inc. becomes independent from General Motors. Lawrence E. Dewey is named Chairman and CEO. 

Today, Allison Transmission manufacturers and sells transmissions globally for all kinds of equipment from school buses, military, emergency services, RVs, mining and more.