Allison to supply 4040 MX transmissions for BAE Systems Hägglunds CV90 MkIV vehicles in single largest tracked defence order in company history.
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Press Release, Indianapolis, 17 June 2026: Allison Transmission Holdings, a global leader in high-performance mobility and work solutions, has announced that it has entered into a contract with BAE Systems Hägglunds to supply 4040 MX transmissions for the company’s CV90 MkIV infantry fighting vehicles.
The $250 million agreement, formalised on June 16th at the Eurosatory defence exhibition in Paris, includes an option for additional units valued at $50 million. The agreement is the largest single tracked defence programme contract in Allison Transmission’s history.
The CV90 MkIV programme serves as the inaugural production platform for Allison’s 4040 MX transmission, and production deliveries are scheduled to begin in 2028. Engineered as an evolution of the proven 3040 MX, the new 4040 MX cross-drive transmission delivers increased power ratings and updated electronic controls while maintaining the existing 3040 MX spatial footprint, allowing 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 integration and selection of Allison’s 4040 MX cross-drive transmission into the CV90 MkIV is a critical milestone in delivering increased mobility and performance,” said Tommy Gustafsson-Rask, President at BAE Systems Hägglunds. “This contract highlights our mutual commitment to providing robust solutions that meet the evolving operational requirements of the armed forces.”
“This historic agreement underscores the proven reliability of Allison’s propulsion solutions in the most demanding environments and missions” said Dana Pittard, Vice President of Defense Programs at Allison Transmission. “By working with BAE Systems Hägglunds, we are delivering a propulsion solution that not only meets the rigorous demands of modern combat vehicles but also demonstrates our collective readiness to support national security initiatives around the world.”
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