Brazil’s Fleet Modernization Signals Long-Term Growth Potential in School Bus Market

INDIANAPOLIS, July 31, 2025 – Allison Transmission, a global leader in propulsion technology, is supporting Brazil’s modernization of student transportation through the delivery of microbuses from Brazilian OEM Volare, a Marcopolo South America business division. The buses are equipped with Allison’s T2100 automatic transmissions with extra fuel efficiency (xFE™). In collaboration with the National Fund for Educational Development (FNDE), these vehicles represent the first school buses with fully automatic transmissions in South America.

Redenção, a municipality in the state of Ceará, is the latest recipient of the 4x4 Volare school buses featuring Allison’s transmissions. The effort across several Brazilian states is part of the Caminho da Escola Program, which aims to provide public school students with access to safer and more reliable transportation. These buses ensure that students who travel long distances on unpaved rural roads have daily access to educational institutions.

“Education in the municipality of Redenção has already faced major challenges. There was a time when children were transported to school on a truck with benches in the back,” said Jane Cleia Pereira da Costa, Redenção’s Municipal Secretary of Education. “But with these modern school buses, the investment made in infrastructure is ensuring that our children commute to and from school with comfort and quality, which contributes to a more promising future.” 

Volare buses, available in both 4x2 and 4x4 configurations, are engineered for rough terrain that is common in Brazil's North and Northeast. Allison's fully automatic transmissions eliminate the need for manual gear shifts, simplifying operation on roads with mud, gravel, or steep inclines. Drivers report less physical strain and greater control, particularly in challenging driving conditions.

“Allison is proud to offer solutions that are fully aligned with the FNDE’s Caminho da Escola program objectives, ensuring students have access to school buses that are on time, high quality and comfortable,” said Gabriel Ruggiero, Regional Director of Operations for South America at Allison Transmission.

Allison Automatics use a torque converter to deliver continuous power and offer a smooth driving experience. They eliminate torque interruptions when a driver shifts gears, which occur with manual and automated manual transmissions (AMTs). The Allison fully automatic transmission’s design provides superior performance, reduced maintenance and greater driver control.

“I’ve had a driver’s license for 30 years, but I’ve never driven such a good vehicle,” said José de Souza, a school bus driver. “If it was already a pleasure to work, now it’s much better. With the automatic transmission I feel more confident. With the manual transmission, it's not like that; sometimes you can miss a gear in a bad place, which doesn't happen with the automatic transmission.” 

For more information about Allison Transmission’s school bus propulsion solutions and hear directly from the impacted drivers and students, visit AllisonTransmission.com. or see the video.