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Czechs Cancel Billion-Dollar Contract for 199 Pandur II APCs

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In January 2006, the Czech Republic selected General Dynamics’ European Land Combat Systems subsidiary Steyr-Daimler-Puch Spezialfahrzeug GmbH of Austria to supply its army with 199 new eight-wheeled Pandur II armored personnel carriers (APCs) between 2007-2012. The vehicles would replace Soviet-era OT-64 SKOT APCs, and would be produced in Austria and the Czech Republic.

As DID noted in its coverage of the initial contenders, the contract includes an option for 35 additional vehicles for a total of 234, and has a potential value of Koruna 23.6 billion ($1-1.4 billion). Steyr’s Pandur II was a finalist, and eventually won the competition. But questions arose, the deal became a political football, and delivery issues jeopardized deal. Steyr recently issued a pair of releases that aim to put the Czech government in a tight spot, while detailing the project’s industrial arrangements… but it wasn’t enough. In the end, 3 issues killed the contract… or did they?

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Stay on top of developments with the Czech Republic's procurement of armored personnel carriers when you subscribe to DII. Our cross-linked article network and reference materials include:

  • Background on initial bidders, early eliminations including Czech firm Globtrade Air, and the eventual cancellation of the contract with General Dynamics' European Land Combat Systems subsidiary Steyr-Daimler-Puch Spezialfahrzeug (based in Austria)
  • Insider quotes: "I am simply convinced that the Czech Army cannot make good use of those 199 carriers. What we need is six-wheelers, armoured four-wheelers and a number of different types of vehicles. Buying 199 eight-wheeled vehicles was just wrong."
  • Specifications of the near winner Steyr's Pandur II, and other contenders
  • Additional articles from the DII library including: "Czechs Issue APC Bidders Shortlist, Exclude Czech Firm," "Czech APC Competition Narrows to 2Ö," "Czech APCs to Carry RAFAEL's RCWS-30," "U.S. Extends SDD Phase of Expeditionary Fighting Vehicle," "Czechs Formalize Gun Contract for New APCs," and more
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