Army To Stop Buying AM General’s HUMVEE Vehicles

by: Matthew Potter
February 5, 2010

Category: AM General, Business Line, Companies, Events, Federal Budget Process, logistics, production program, Services, U.S. Army | RSS 2.0

In their 2011 budget request the Army reports that 2011 will be the last year of procurement for the ubiquitous AM General HUMVEE light truck. This four wheeled vehicle replace the venerable Jeep in U.S. military service in 1984. The HUMVEE will still be available for purchase by other U.S. services and for sales overseas but the Army states it has met its Acquisition Objective. There will also be contracts to maintain the existing fleet of vehicles.

The Army though does provide about half the market for the vehicle so the loss will be a blow to AM General. There is a new program in development called the Joint Light Tactical Vehicle (JLTV) that will when complete start replacing the HUMVEE. The U.S. is also investing in thousands of new trucks. Losses in Iraq and Afghanistan have been substantial but one of the reasons HUMVEE production is ending is recently there have been less damaged or destroyed then estimated.

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