Jun 13, 2011 4:19 PM

In order to meet demand for its I-Shift automated manual transmission, Volvo Trucks announced a $7 million investment to bring assembly of the transmission to the Hagerstown MD powertrain plant, with production scheduled for the third quarter of 2012.

The I-Shift was introduced in the North American market in 2007, and in 2010 reached a penetration of 26% of Volvo Trucks’ North American sales. Users continue to report fuel economy improvements from I-Shift, and because it is only available with a Volvo engine, the transmission is helping to promote the company’s integrated powertrain approach.

The transmission is currently assembled in Koping, Sweden, and then sent to Hagerstown for adaptation to North American market requirements. The Hagerstown investment will include creation of a new assembly line, installation of new equipment and tooling, and employee training. The new capacity will be the primary source for North America.