AM General has received an $89 million deal to deliver 739 new Humvees to the Army National Guard, the company said Thursday.
The latest deal is its second M1152A1 Humvee order in the last five months and arrives as the Army is adjusting its Joint Light Tactical Vehicle and tactical wheeled vehicle strategy in an effort to shift funds towards modernization priorities.
“AM General is excited to continue the strong partnership with the Army National Guard and supports their efforts to modernize and enhance the readiness of the Humvee fleet,” Chris Vanslader, AM General’s executive vice president for U.S. defense, said in a statement.
Deliveries for the new Humvees will begin in the third quarter of FY ’19.
The latest version of the vehicle features improvements to Humvee’s powertrain, suspension and cooling and electrical systems, according to AM General.
Last October, AM General received an $89 million deal to deliver 740 new Humvees for the Army National Guard, as well as a separate $121 million to integrate new capabilities on the vehicles over the next five years (Defense Daily, Oct. 2018).
Under Secretary Ryan McCarthy said last week the Army’s tactical wheeled vehicle fleet is set to stand at 55,000 Humvees to 49,000 JLTVs and 800 Infantry Squad Vehicles, after trimming the JLTV program by $800 million and 1,900 vehicles in its effort to shift money toward modernization efforts (Defense Daily, March 14).
Oshkosh Defense [OSK] is the contractor for JLTV after receiving a $6.7 billion JLTV production contract in 2015 for 17,000 vehicles.
The Army’s recently released FY ’20 budget request detailed officials have found $33 billion the service plans to move from low-tier priorities toward fully funding development of futures weapon systems.