citizen578
New Member
The Financial Times is reporting that General Dynamics has won the FRES-SV (specialist vehicle). The official announcement was not due until the 26th of March, but apparently the MoD are scrambling to pre-empt a leak.
BAE loses to US in £1bn army ‘Scout’ race
By Alex Barker and Sylvia Pfeifer
Published: March 12 2010 23:01 | Last updated: March 12 2010 23:01
BAE Systems has lost the race to build the British army’s next generation of “Scout” armoured vehicles, beaten by General Dynamics of the US in the competition for a contract worth more than £1bn.
The US company’s victory is a heavy blow for BAE and will put at risk jobs at the UK company’s armaments division.
Quentin Davies, defence minister, is shortly expected to name General Dynamics as the preferred bidder in the deal to build an initial 750 vehicles.
However, there will be a delay of at least a year for a planned upgrade of the Warrior armoured vehicle.
The delay to the Warrior upgrade is the result of a “funding gap” that has emerged because of the Scout procurement and some doubts over the maturity of the technology. But defence officials insist the programme will still go ahead and that the “slippage” will only be short term.
The contest to supply the armoured reconnaissance vehicles is central to the future of Britain’s armoured vehicle industry and BAE’s business.
BAE, which has already announced the closure of three land-vehicle manufacturing plants and several hundred job losses over the past year, needed to win the two contests. It might have to cut more jobs.
The company had pledged to create jobs if it won the contest by opening a site near Donnington. GD has said winning the competition would create and sustain 10,500 UK jobs. But BAE has also said it would have to take another “look at restructuring in the UK” if it failed to win the Scout contract and Warrior upgrade.