AM General misses on contract for new $6.7 billion military vehicle contract

The U.S. Department of Defense issued a release Tuesday night that Oshkosh Defense, in Oshkosh, Wis., was awarded an initial contract that could reach $6.7 billion. The company said it expects to deliver approximately 17,000 vehicles.

Lockheed Martin was the other contractor involved in the multi-year competition for the vehicle that is destined to take the place of the Humvee. It is expected that the contract eventually could reach $30 billion.

In a prepared statement, a spokesman for AM General said: “We are disappointed with the government’s decision and continue to believe that AM General and our BRV-O vehicle are the right choice for the JLTV program, based on our best value offer which is backed by decades of LTV expertise and proven record as a trusted and reliable partner with the U.S. military.

"Our BRV-O provides world-class survivability features to Soldiers and Marines while delivering unmatched vehicle payload and performance. We are very proud of our team’s efforts and our BRV-O offering. At this time, we are reviewing the government’s decision and are considering all available options.”

South Bend-based AM General has been producing the Humvee for the military for three decades. It still has contracts with the military to produce the vehicles for foreign militaries as well as supply parts and refurbishment services for the existing fleet of Humvees for years to come.