Expanded vehicle options
Following the 31 July conclusion of BAE Systems' largest deal to date, the group's purchase of Armor Holdings for $US 4.53 billion, now has a multiplicity of organic options in land and armaments. The combined business will be well positioned to address significant new tactical vehicle requirements.
In addition to the ADF's Land 121 vehicle requirement, the US and UK armed forces, and many other nations' armed forces, are experiencing an increased demand for tactical wheeled vehicles with increased survivability. In the US, approximately 60 percent of the Army's current stated medium truck requirements are still to be manufactured.
This requirement, together with additional opportunities in relation to new vehicle programs – such as the Family of Medium Tactical Vehicles (FMTV), the Mine-Resistant Ambush Protected (MRAP) vehicle, and future prospects such as the Joint Light Tactical Vehicle (JLTV) – are expected to be valued at over $US10 billion.