General Dynamics European Land Systems awarded €733 million (USD $870 million) of a €1.74 billion contract for 348 Spanish 8x8 combat vehicles

Rhea-AI Summary

The Spanish Ministry of Defense awarded a €1.74 billion (USD $2.06 billion) contract to a joint venture including General Dynamics European Land Systems-Santa Bárbara Sistemas (GDELS-SBS) for 348 8x8 Wheeled Combat Vehicles (VCR). GDELS-SBS's share is €733 million (USD $870 million). Deliveries are scheduled over seven years, with plans for approximately 1,000 vehicles. The joint venture aims for at least 70% Spanish industry participation and will generate around 650 direct and 1,100 indirect jobs.

Positive

• Contract worth €1.74 billion (USD $2.06 billion) strengthens revenue outlook.
• GDELS's share of €733 million (USD $870 million) enhances financial position.
• Potential for future upgrades with advanced technology in PIRANHA 5 vehicles.

Negative

• None.

MADRID, Aug. 25, 2020 /PRNewswire/ -- The Spanish Ministry of Defense today awarded a €1.74 billion (USD $2.06 billion) contract to a joint venture of General Dynamics European Land Systems-Santa Bárbara Sistemas (GDELS-SBS) and three other companies to deliver 348 8x8 Wheeled Combat Vehicles (VCR), their maintenance and life cycle support, as well as support their international commercialization. The GDELS-SBS contract is for €733 million (USD $870 million).

The program is expected to grow to a total of approximately 1,000 vehicles.

The vehicle, named "Dragón" by the Spanish Army, is based on the GDELS 8x8 PIRANHA 5's combat wheeled vehicle and includes all Spanish national technologies as required by the Spanish MoD. It is expected to be delivered over a seven-year period.

"We sincerely thank the Spanish Ministry of Defense for its confidence in our vehicle platform, our engineering, and industrial capabilities," said Juan Escriña, GDELS Vice President for Tracked Vehicles & Artillery and Managing Director of GDELS-Santa Bárbara Sistemas.  "As a reliable partner, GDELS-Santa Bárbara Sistemas is truly proud to help the Spanish Army protect Spanish soldiers and improve its strategic mobility with state-of-the-art 8x8 wheeled combat vehicles," Escriña adds.

The GDELS-SBS joint venture (JV) will manufacture the 8x8 VCR at GDELS sites in Trubia and Seville, Spain, with the collaboration of the other Spanish JV members. The JV members include GDELS-Santa Bárbara Sistemas, Indra Sistemas, Sapa Placencia, and Escribano Mechanical & Engineering. The Spanish Ministry of Defense mandated a National Industrial plan in which Spanish industry participation must be no less than 70% of the total program. The JV was established to ensure that all operational objectives and needs of the Spanish Army and the Spanish Ministry of Defense are fully met and to fulfill the requirements of the government's industrial plan.

GDELS-Santa Bárbara Sistemas program participation will involve approximately 650 direct and 1,100 indirect employees.

About the PIRANHA 5
The PIRANHA 5 is one of the most advanced and capable 8x8 wheeled armored vehicles and the top end of the PIRANHA vehicle family. In addition to its high level of protection, the PIRANHA 5 has a flexible and spacious crew compartment and significant payload capacity. The vehicle's inherent growth potential ensures the ability for future upgrades and technology insertion over the vehicle's lifetime. In terms of mobility and maneuverability, the PIRANHA 5, with its efficient all-wheel drive, hydro-pneumatic suspension, and 4th axle steering, sets the top standard in this vehicle class. The PIRANHA family of vehicles is the most successful wheeled armored vehicle family - more than 11,500 PIRANHAs are in service worldwide.

About GDELS
General Dynamics European Land Systems, headquartered in Madrid, Spain, is a business unit of General Dynamics (NYSE: GD) and conducts its business through five European operating sites located in Austria, Czech Republic, Germany, Spain, and Switzerland. With approximately 2,200 highly skilled technical employees, the companies design, manufacture, and deliver world-class land combat systems, including wheeled, tracked, and amphibious vehicles, bridge systems, and armaments, to global customers. More information www.gdels.com.

 

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SOURCE General Dynamics European Land Systems

FAQ

What is the value of the contract awarded to GD for the Spanish 8x8 vehicles?

The contract awarded to the joint venture, including General Dynamics, is valued at €1.74 billion (USD $2.06 billion).

What is the duration of the contract for delivering the 8x8 Wheeled Combat Vehicles?

The contract is expected to deliver vehicles over a seven-year period.

How much of the contract is allocated to General Dynamics European Land Systems?

General Dynamics European Land Systems-Santa Bárbara Sistemas's portion of the contract is €733 million (USD $870 million).

How many vehicles will be delivered under this contract?

The contract includes the delivery of 348 8x8 Wheeled Combat Vehicles.

What is the expected total number of vehicles involved in the program?

The program is expected to grow to approximately 1,000 vehicles.