AM General - National Guard Association of the U.S.

August 6, 2013
AM General Actions to Ensure Future
• Restructured business:
– Renegotiated labor agreement
– Renegotiated supply base pricing, focus on small business viability
– Workforce reductions, both salaried and hourly
• Developed winning JLTV bid – DD250, 14 Aug
• Finalist for SOCOM GMW 1.1 program
• Worked with Congress and Adjutants General to fund National Guard
HMMWV modernization initiative
• Directed significant new resources to cultivating international sales
• Enhanced focus on building commercial business
National Guard HMMWV
• At the request of National Guard
leadership, Congress provided
$100M for HMMWV modernization in
the FY ‘13 budget
• Program structure being developed
by the Army, AM General, and Red
River Army Depot (RRAD)
– Approx. 800 vehicles will be produced
– AM General will be the prime contractor
with support from RRAD
– New vehicle chassis including engine,
drive train, suspension built at the AM
General HMMWV plant
– RRAD will refurbish existing chassis’ to
like new condition and provide to AM
General for final integration and test
• This program is envisioned as a
multi-year, long-term effort to
modernize the National Guard fleet
• House passed FY’14 Defense
Appropriations Bill provides additional
$100M for the program
Ground Mobility Vehicle (GMV1.1)
• Customer: Special Operations
Command (SOCOM)
• Purpose:
– Multiple awards possible for
R&D Phase and down select to
one for Production
• Proposal Delivered
July 2013
• R&D Award
August 2013 (est)
• Production Award
April/May 2014 (est)
– LRIP - 127 vehicles
– FRP – 1170 vehicles
Total – 1297 vehicles
Joint Light Tactical Vehicle – BRV-O
• Customer: Joint Program Office
• Purpose: Produce and deliver 2000
vehicles for LRIP (FY15-17) and
15,000 for FRP (FY18-22)
• Overview:
– Contract: Fixed price award to
either AMG, Lockheed or
Oshkosh (est)
– Basis of award will be on the
best value to the Government:
• Technical capability
• Contract cost
• O&S cost
• Value of government owned
Tech Data Package
• Small business participation
International Pursuits
The HMMWV continues to be the Gold Standard for tactical wheeled vehicles
around the world
Over 40,000 vehicles have been delivered to over 50 countries in every
corner of the globe
Demand continues with a potential global market of over 30,000 new vehicles
over the next 5 – 7 years despite the US Army decision to discontinue the
purchase of new vehicles
Five pursuits comprise our near term new business targets with a potential for
nearly 5000 vehicles to be under contract in 2013 and 2014
Ecuador is expected to purchase over 3100 vehicles under two 2013 Foreign Military Sales
(FMS) cases for the Army and National Police
Iraq has identified an initial requirement for 350 vehicles for the Ministry of Interior National
Police and Border Patrol Forces to be under contract in 2013
Tunisia will procure 350 vehicles for Border Patrol and the Army in 2013
In June 2013 AM General successfully concluded a series of very rigorous tests for the
Malaysian Army and expects annual new vehicle procurements of 300 – 500 vehicles
beginning in 2014
Both the Royal Saudi Land Forces and the Saudi Ministry of Interior have requirements for
new vehicles. Initial production quantities in 2014 are expected to be 300 – 500 new vehicles