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American Rheinmetall Vehicles and GM Defense Win Contract for the First Phase of the U.S. Army's Common Tactical Truck Program

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On January 30, 2023, American Rheinmetall Vehicles and GM Defense won a contract for the U.S. Army's Common Tactical Truck (CTT) Program, aimed at replacing heavy tactical trucks with up to $14 billion for 40,000 trucks. The HX3 Common Tactical Truck (HX3-CTT) will integrate advanced technologies such as driver assistance systems and autonomous capabilities. This partnership combines engineering strengths from both firms and leverages commercial truck technologies to ensure high operational capability and lifecycle cost efficiency. The HX3-CTT features enhanced mobility and modularity to meet diverse military demands.

Positive
  • Awarded a contract for the U.S. Army's CTT Program valued at up to $14 billion.
  • The HX3-CTT incorporates advanced technologies, enhancing Soldier capability.
  • Strong strategic collaboration between American Rheinmetall and GM Defense enhances competitiveness in military contracts.
Negative
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STERLING HEIGHTS, Mich. and WASHINGTON, Jan. 30, 2023 /PRNewswire/ -- American Rheinmetall Vehicles (Sterling Heights, MI) and GM Defense LLC (Washington, DC) have won a contract for the first phase of the U.S. Army's Common Tactical Truck (CTT) Program. The aim of the multi-phased program is to replace the Army's family of heavy tactical trucks with production of up to 40,000 trucks valued at up to $14 billion. The two powerhouse defense companies formed a strategic collaboration in 2022 to compete in the program; bringing together two world-class engineering and manufacturing giants to deliver a modern, tactical truck that enhances Soldier capability through advanced technologies including advanced driver assistance systems (ADAS) for safety, increased off-road mobility, cybersecurity, machine learning, artificial intelligence, improved survivability and fuel efficiency, among other emerging technologies. 

The team offered the HX3 Common Tactical Truck (HX3-CTT). The HX3 is the latest generation of trucks in the highly successful, combat proven, HX family of trucks which are in service with a number of NATO and U.S. allied nations. The HX family of trucks derives from MAN Truck and Bus commercial truck offerings bringing a high degree of commerciality to the fleet, a priority for the Army in the CTT program. The HX3-CTT next-generation system has enhanced on and off road mobility, integrated survivability, and an open digital architecture supporting ADAS and enabled for autonomous vehicle operation. Combined with the open architecture, the commercial backbone of the HX3-CTT will support persistent modernization and allow for rapid increases in capability as technologies mature. With a global footprint of both current military user nations and commercial dealer networks, the HX3-CTT provides a basis for optimized lifecycle costs and service support to the Army across the globe.

"Both American Rheinmetall Vehicles and GM Defense look forward to providing competition to the Army's CTT Program. We are committed partners to the Army, bringing tremendous operational capability coupled with advanced safety features, ensuring our Soldiers can achieve their mission safely and effectively. Together our team will deliver a transformational truck that leverages the commercial strenghths of our partners, Rheinmetall MAN Military Vehicles and General Motors, and the commonality of the HX3-CTT design," said Matthew Warnick, Managing Director for American Rheinmetall Vehicles.

"Winning the CTT prototype phase demonstrates the undeniable value that the strategic collaboration between GM Defense and American Rheinmetall Vehicles brings to this important, next-generation Army program," said Steve duMont, president of GM Defense. "We are excited to bring our advanced technologies and manufacturing prowess into this important collaboration and deliver a proven, modern solution to enhance warfighter capability. We look forward to continuing our work with American Rheinmetall Vehicles to execute the first prototype phase, while gaining the necessary insights to strengthen our position to win future phases of the program."

HX3 Common Tactical Truck

Technology for the future: The HX3-CTT features an advanced, interchangeable protected cab design, ADAS, and drive by wire operation. The new open systems electrical architecture allows rapid integration of leader-follower, tele-operation, and fully autonomous capabilities that focus on protecting our most valuable combat asset – the Soldier.

Common platforms and parts to support a family of vehicles: The HX3-CTT is the new, next-gen variant of the globally successful HX family of military-off-the-shelf tactical trucks. It possesses an extremely high level of commonality and modularity across variants: cargo, load handling systems, tankers, and line haul tractors. With an HX family that can scale from 4x4 to 10x10, the HX can meet any military need.

Commerciality in its DNA: The HX3-CTT leverages best-in-class advances in commercial truck technology, safety, fuel efficiency, and emissions reduction. Ruggedized for the stresses of military service, the HX family provides an "off the shelf" capability. This commercial backbone reduces obsolescence risk/cost, expands parts availability and reduces sustainment demands.

Allied interoperability: The HX family of trucks have been sold to 20 customers globally including an active allied user group consisting of United Kingdom, Australia, New Zealand, Germany, Austria, Norway, Sweden, and Denmark, creating common global supply chains, training opportunities, and integrated operations among key allies operating around the world.

About American Rheinmetall Vehicles

American Rheinmetall Vehicles delivers next-generation, advanced tactical wheeled vehicles and innovative tracked and wheeled combat vehicles in support of today's highest combat vehicle modernization priorities. Rheinmetall's collaborative global structure allows for the maturation and strengthening of the U.S. Industrial Base now and into the future. American Rheinmetall Vehicles is part of the American Rheinmetall family of U.S. companies including American Rheinmetall Munitions in Stafford, VA, American Rheinmetall Systems in Biddeford, ME and U.S. corporate parent American Rheinmetall Defense in Reston, VA. www.rheinmetall.com/arv 

About GM Defense, LLC.

GM Defense delivers integrated vehicles, power and propulsion, and autonomy and connectivity solutions to global defense, security, and government markets. The exceptional reliability of GM Defense's technologies results from decades of proven performance and billions of dollars spent in independent research and development by its parent, General Motors, a world leader in global design, engineering, and manufacturing capabilities. For more information, please visit www.gmdefensellc.com.

Delivering tomorrow's truck today.

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Rheinmetall #GMDefense #HX3CTT #TechnologyDriven #TacticalTruck #USArmy #Modernization #MilitaryMobility

 

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SOURCE GM Defense LLC

FAQ

What is the contract awarded to GM and American Rheinmetall for?

The contract is for the first phase of the U.S. Army's Common Tactical Truck Program, focusing on replacing heavy tactical trucks.

What is the value of the U.S. Army's Common Tactical Truck Program?

The CTT Program is valued at up to $14 billion for the production of up to 40,000 trucks.

What are the features of the HX3 Common Tactical Truck?

The HX3-CTT features advanced driver assistance systems, increased off-road mobility, and can be equipped for autonomous operations.

How does the partnership benefit GM's stock performance?

Winning the CTT prototype phase showcases GM Defense's technological capabilities and can positively impact GM's reputation in defense contracts.

When was the contract for the CTT Program awarded?

The contract was awarded on January 30, 2023.

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