Oshkosh Wins $6.7 Billion Military Contract to Replace Humvee
August 25 2015 - 5:49PM
Dow Jones News
By Doug Cameron
Oshkosh Corp. was awarded a $6.7 billion contract to build the
first batch of as many as 55,000 light trucks to replace the aging
Humvees used by the U.S. Army and Marine Corps, the Pentagon said
Tuesday.
The company won over rival bids from Lockheed Martin Corp. and
AM General LLC to build thousands of Joint Light Tactical Vehicles
in a contest analysts said could reshape a domestic industry that
has weathered shrinking domestic purchases and tougher competition
for export deals from overseas rivals.
The three companies emerged from a pack that included Navistar
International Corp., General Dynamics Corp. and Ford Motor Co. for
what has been billed by analysts as the Army's most important
acquisition program in years after a series of stumbles left it
canceling helicopter, artillery and communications deals after
investing billions of dollars.
It is a key win for Oshkosh, whose defense sales slid 60% in the
latest quarter from a year ago as the Pentagon slowed buys of
heavier military vehicles, though the company has dismissed
speculation among analysts that it may sell or spin off the
unit.
Write to Doug Cameron at doug.cameron@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 25, 2015 17:34 ET (21:34 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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