Army Continues to Invest in M2 Bradley Fighting Vehicles

by: Matthew Potter
August 15, 2012

Category: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, Department of Defense, development program, England, Events, Federal Budget Process, logistics, production program, Services, U.S. Army | RSS 2.0

The U.S. Army has not developed a new heavy armored vehicle since the 1980’s. They have continued to rely on the M1 Abrams tank and M2 Bradley Fighting Vehicle family for that mission. They did start a new system, Future Combat System (FCS), that would have used speedy, wheeled vehicles to ultimately replace the two venerable tracked systems but that was cancelled due to cost and schedule issues. The current systems have had to “make do” throughout the fighting in Iraq and Afghanistan.

That does not mean they haven’t spent billions on upgrading and refurbishing the systems. The current versions have received significant changes in armor, mobility and electronics. These has kept them capable of carrying out modern missions.

The Army just announced yet another contract to upgrade M2 Bradley’s assigned to the U.S. National Guard. BAE Systems (BAE:LSE), which through a series of mergers and acquisitions, now owns the rights to the Bradley originally designed and manufactured by FMC. That British company received a contract worth over $300 million to provide “enhanced survivability and interoperability” for vehicles belonging to a variety of states.

The company will see more contracts like this as the fighting winds down in Afghanistan and the Army resets their fleet of Bradleys to a common standard.

There is a new Ground Combat Vehicle (GCV) in development that will ultimately supplement or replace the M2. The Army is waiting to received prototype vehicles from different bidders to begin testing. BAE is one of several companies participating in that contest.

BAE like all of the other large defense contractors is facing challenging times as the U.S. and its Western European allies move to reduce their defense spending. Recent earnings were down compared to last year with a 10 percent drop in sales. Keeping existing programs like the Bradley active will only help it in the near future. If the U.S. does go ahead with the GCV and slowly replace the M2 BAE could lose several hundred million in revenue a year.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Tags: , , , , , , , , ,

| Give a Comment | trackback