Humveee manufacturer AM General brought home a $356 million contract to build 1,673 of the trucks in two variants for the Afghan National Army and Police.
The contract, awarded by the U.S. Army, calls for 1,259 M1151 A1B1 expanded-capability armament carrier Humvees and 414 M1152 A1B2 cargo- and personnel-carrier models.
“This contract announcement reinforces AM General’s position as the global leader in Light Tactical Vehicles. Our international partners continue to rely on us to meet the most diverse range of mission capabilities offered by the most adaptable, affordable Light Tactical Vehicles on the planet,” said AM General President and CEO Andy Hove.
Global demand for new-production and remanufactured light tactical vehicles like the Humvee, automotive kits, spare parts and training services is at historic highs, AM General said. The privately-held company has brought in more than $1 billion in contracts to build new or rehab old Humvees, formally called the high mobility multipurpose wheeled vehicle (HMMWV), for the U.S. and foreign militaries.
The Army and Marine Corps are in the process of replacing their legacy tactical truck but will keep thousands of Humvees in their fleets for the foreseeable future. AM General was not chosen to build the services’ new Joint Light Tactical Vehicle (JLTV) that will supplant portions of their legacy light tactical vehicle fleets.
In the second half of 2015, AM General racked up $900 million in Humvees contracts. They included a $373 million foreign military sales deal to build a total 2,082 trucks for Afghanistan, Iraq, Kenya, Lebanon, Ukraine and Tunisia and a $428 million contract for M9973 Humvee ambulance for disaster relief operations by the Army, National Guard and Reserve.
In October, AM General announced $42 million in new Humvee contracts and modifications to existing domestic and international contracts for vehicles and parts for Iraq, Afghanistan, Tunisia, Israel, Turkey, Kenya, Lebanon and the United States.
“As the U.S. Government and foreign countries engage in more rapid, dispersed and challenging missions around the globe, deployability and readiness are key determinants of success,” the company said in a statement. “During the past year, the company has seen robust business in its Light Tactical Vehicle lines.”
To the windfall in 2015, AM General added a $66.4 million contract in June to build 356 Humvees for the Iraqi army. It followed another deal inked in February for $57 million worth of Humvees and spare parts for the Iraqis, Argentina and the U.S. Guard and Reserve.
The company also continues to refurbish old Humvees a public/private partnership with the National Guard and Red River Army Depot that has generated $250 million in work and was granted an additional $160 million in fiscal 2016.