PARIS, — June 22, 2026 : Allison Transmission has signed a landmark contract with BAE Systems Hägglunds to supply its newly developed 4040 MX™ cross-drive transmissions for the CV90 MkIV Infantry Fighting Vehicle (IFV) program. The agreement, announced during the Eurosatory 2026 defense exhibition in Paris, is valued at $250 million and includes an option for additional units worth up to $50 million.
The contract represents the largest single tracked defense program award in Allison Transmission’s history and establishes the company as the transmission supplier for one of Europe’s most widely deployed armored vehicle platforms.
4040 MX Selected for CV90 MkIV
The CV90 MkIV will become the first production vehicle to be equipped with Allison’s new 4040 MX cross-drive transmission. The system is an advanced evolution of the company’s proven 3040 MX transmission, which is currently used on several armored vehicle programs, including the U.S. Army’s M10 Booker combat vehicle.
The 4040 MX provides increased power capacity and upgraded electronic controls while maintaining the same physical dimensions as its predecessor. The unchanged footprint allows direct integration with the CV90 MkIV’s Scania engine without requiring significant modifications to the vehicle’s powertrain architecture.
Before the contract award, Allison Transmission and BAE Systems Hägglunds completed a two-year integration and testing program to validate the transmission’s compatibility, reliability, and performance. Production deliveries of the 4040 MX are scheduled to begin in 2028.
Supporting Next-Generation Combat Vehicle Requirements
The new transmission has been developed to meet the growing mobility and performance requirements of modern tracked combat vehicles. Its enhanced power handling capability supports the increased weight and operational demands of the latest CV90 variant.
The agreement strengthens Allison Transmission’s position within the defense sector and establishes a long-term production pipeline linked to future CV90 MkIV vehicle deliveries.
The contract also continues a longstanding relationship between Allison Transmission and BAE Systems Hägglunds. Previous generations of the CV90 family have utilized Allison X300-series transmissions, making the 4040 MX the next step in the platform’s drivetrain evolution.
CV90 MkIV Expands Across European Armed Forces
The CV90 family remains one of the most widely operated infantry fighting vehicle platforms in Europe. The vehicle is currently in service with Sweden, Denmark, Estonia, Finland, the Netherlands, Norway, and Switzerland.
The latest CV90 MkIV variant introduces several upgrades, including an increase in Gross Vehicle Weight Rating from 35 tonnes to 38 tonnes, providing greater payload capacity. The vehicle also features an upgraded electronic architecture, improved digital systems, and integration of an Active Protection System to enhance survivability and battlefield effectiveness.
BAE Systems Hägglunds has recently secured major procurement contracts in Slovakia and the Czech Republic for approximately 400 CV90 MkIV vehicles. These orders are expected to create a significant deployment base for Allison’s 4040 MX transmission technology over the coming decade.
With production scheduled to begin in 2028, the contract supports the continued modernization of armored vehicle fleets and strengthens industrial cooperation between Allison Transmission and BAE Systems Hägglunds in the global defense market.
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