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BAE Responds to FMTV Program Loss

SEALY, Texas --- BAE Systems has been notified by the US Department of Defense (DoD) that it has not been selected for a follow-on contract for production of vehicles under the Family of Medium Tactical Vehicles programme.

Linda Hudson, President of BAE Systems Land & Armaments said: “We delivered a strong proposal, which we believe met the best interests of the business, customer and our shareholders. While this news is disappointing, we are proud of what we have achieved in making the FMTV the medium tactical vehicle of choice for the Army during the past 17 years.

“We remain committed to implementing a global land systems strategy, particularly in the areas of readiness and sustainment and export activities.”

The Company’s financial planning assumptions anticipate FMTV sales in each of 2009 and 2010 of approximately US$2 billion. It is not anticipated that this planned activity will be impacted by this decision. The Company had planned for FMTV sales to reduce to less than US$1 billion per year from 2011 onward.

Over the past 17 years BAE Systems has delivered more than 56,000 FMTV trucks and trailers and developed a Long-Term Armored Strategy to make the FMTV the safest, most reliable medium tactical vehicle it can provide to the armed forces. The BAE Systems FMTV fleet has a 94 percent average operational readiness rate in both Iraq and Afghanistan.

BAE Systems is under contract to deliver FMTVs through to the fourth quarter of 2010. In addition, the company continues to support the US Army’s FMTV programme through its public-private partnership with Red River Army Depot for the reset and support of FMTVs, and through its field support representatives deployed around the world. It will continue to fulfill these commitments and consider its options as it carefully reviews the Army’s latest decision regarding the FMTV rebuy programme.


BAE Systems is the premier global defense, security and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. With approximately 105,000 employees worldwide, BAE Systems' sales exceeded £18.5 billion (US $34.4 billion) in 2008.

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BAE Systems Responds to U.S. Department of Defense Decision