Navistar To Provide More Trucks To U.S. Army

The United States military has expended a great deal of logistics and support vehicles in Iraq and Afghanistan. These trucks have taken a beating both from heavy use and enemy attacks. The Army has let several contracts recently to repair, reset and replace them. Yesterday it was announced that Navistar would be awarded a contract to provide tanker trucks, wreckers and generic troop transport vehicles. The value of this contract is over $400 million.

Navistar was disappointed that it did not win a portion of the MRAP-ATV contract to provide the lighter vehicles for use in Afghanistan. That contract went to Oshkosh. This contract will offset some of the losses from not contributing to that effort. It also demonstrates that the U.S. has been able to grow a decent industrial base when it comes to logistic support vehicles.

Oshkosh Keeps Winning

Fresh off of winning two contracts for the new MRAP-ATV worth over a billion dollars for use in Afghanistan Oshkosh announced that they had won two smaller contracts. These are only worth about $36 million but indicate that the company is showing some strength. The first is for heavy trucks to support U.S. Army engineering troops. The second is to treat Army tanker trucks to protect against rupturing and burning fuel during transport.

The MRAP-ATV contract is probably the last major contract for these types of vehicles. The win by Oshkosh has already caused ripples through out the industry with Navistar and BAE Systems losing work and jobs. The U.S. military is thinking now how to fit the existing MRAP vehicles purchased for Iraq into their tactical organizations. The MRAP-ATV will be lighter and more maneuverable to support operations in rougher terrain.

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