Sweden, Germany, United Kingdom Jointly Acquire 436 BAE Systems BvS10 All-Terrain Vehicles

Rhea-AI Summary

BAE Systems has secured a joint procurement agreement with Sweden, Germany, and the UK to supply 436 BvS10 all-terrain vehicles, valued at $760 million, aimed at enhancing Arctic operational capabilities. Deliveries are slated to commence in 2024, with allocations of 236 vehicles to Sweden, 140 to Germany, and 60 to the UK. This acquisition bolsters BAE's position as a leader in defense mobility solutions and includes potential future orders under the Collaborative All-Terrain Vehicle (CATV) program.

Positive

• Joint procurement agreement valued at $760 million strengthens market position.
• Expected delivery of vehicles starting in 2024 indicates future revenue growth.
• Potential for additional orders under the CATV program ensures ongoing production.

Negative

• None.

STOCKHOLM--(BUSINESS WIRE)-- Sweden, Germany, and the United Kingdom have reached an agreement with BAE Systems to purchase 436 BvS10 all-terrain vehicles. The joint procurement, worth $760 million, is in support of Arctic operations for the Collaborative All-Terrain Vehicle (CATV) program.

BAE Systems’ military all-terrain vehicles are designed for operations in the harshest and most remote environments and this agreement signals the Company’s position as the defense industry’s leader for these capabilities.

“We‘re seeing increased interest from numerous countries for the extreme mobility capabilities offered by the BvS10 and its unarmored sister vehicle, Beowulf,” said Tommy Gustafsson-Rask, managing director of BAE Systems Hägglunds, which manufactures the vehicles in Örnsköldsvik, Sweden. “Sweden, Germany, and the United Kingdom will be getting an excellent return on their investment in these highly capable vehicles for decades to come. This further demonstrates the strong relationship between BAE Systems and our customers to deliver these critical capabilities.”

The three-nation acquisition will deliver the 436 vehicles beginning in 2024, with 236 BvS10s going to the Swedish Defense Materiel Administration (FMV), 140 to the German Federal Ministry of Defence (BAAINBw), and 60 to the United Kingdom Ministry of Defence (MoD). The vehicles are based on the latest version of the BvS10 currently operated by Sweden, and will include variants for troop transport, logistics, medical evacuation, recovery, and command and control.

The CATV program includes a framework agreement that could lead to the purchase of more vehicles by the three nations, keeping the BvS10, the world’s leading all-terrain vehicle, in production for many years to come. Sweden is the lead nation and has established a joint procurement office to lead the effort with representatives from all three nations.

This acquisition follows Sweden’s order last year of an additional 127 BvS10 all-terrain vehicles for its existing fleet. In parallel to this agreement, Sweden is also procuring an additional 40 BvS10s in a separate contract valued at approximately $50 million.

The BvS10 and Beowulf are the world leaders when it comes to all-terrain solutions. Their articulated mobility systems provide optimal maneuverability across varying terrains so they can traverse snow, ice, rock, sand, mud or swamps, as well as steep mountain environments. The vehicles’ amphibious feature also allow them to swim in flooded areas or coastal waters.

The vehicles can deliver personnel and supplies to sustain strategic, tactical, and operational mobility.

BvS10’s unprecedented mobility is based on terrain accessible North Atlantic Treaty Organization (NATO) standards. Its modular design allows it to be reconfigured for varying missions and can be delivered in multiple variants that include carrying personnel, command and control, ambulance, vehicle repair and recovery, logistics support, situational awareness, and a weapons carrier with additional mortar capability.

BvS10 is currently operated by Austria, France, the Netherlands, Sweden, and the United Kingdom. BAE Systems’ Beowulf, the unarmored variant of the BvS10, won the U.S. Army’s competition for its Cold Weather All-Terrain Vehicle (CATV) program in August. The U.S. Army will receive 110 vehicles over a five-year period.

Issued by:
BAE Systems, Inc.
www.baesystems.com
@BAESystemsInc

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View source version on businesswire.com: https://www.businesswire.com/news/home/20221216005114/en/

Ola Thorén, BAE Systems Hägglunds

Office: +46 660 80506; Mobile: +46 708 335000

ola.thoren@baesystems.se



Luke Watkinson, BAE Systems

M: +44 7471 148 396

luke.watkinson@baesystems.com

Source: BAE Systems

FAQ

What is the significance of BAE Systems' $760 million contract?

The contract represents a major opportunity for BAE Systems, enhancing its leadership in military all-terrain vehicle production.

When will the BvS10 vehicles be delivered?

The delivery of the 436 BvS10 vehicles is set to begin in 2024.

Which countries are involved in the BAE Systems vehicle procurement?

Sweden, Germany, and the United Kingdom are collaborating on this procurement.

How many BvS10 vehicles will each country receive?

Sweden will receive 236 vehicles, Germany 140, and the UK 60.

What is the purpose of the Collaborative All-Terrain Vehicle (CATV) program?

The CATV program aims to enhance military mobility in extreme environments and may lead to future vehicle acquisitions.