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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