Expectations, mine and the Street’s, were already calling for a cyclical downturn for Allison Transmission (ALSN) in 2020, as the company was going to see weaker heavy and medium-duty demand and substantially weaker demand in end-markets like energy and mining. Now with the Covid-19 outbreak leading to manufacturing shutdowns and widespread curtailment in economic activity, what was already going to be a tough year is now looking like a really challenging one.
Allison hasn’t sold off as badly as some of its vehicle supplier peers; a fact I attribute at least partly to