$317M to General Dynamics for LAV-A2 Vehicles & Turrets
General Dynamics Land Systems in Sterling Heights, MI has finally received awards for all phases of a contract for new eight-wheeled LAV-A2 vehicles in armored personnel (LAV-PC), anti-tank (LAV-AT), command & control (LAV-C2), logistics (LAV-L), and mortar (presumably LAV-EFSS) variants for the U.S. Marine Corps.
While the original contract had a stated maximum of $307 million, the final tally was actually $317 million for 281 LAV-A2 8×8 vehicles and 394 electric-drive turrets.
Note that these are improved variants of the LAV Gen II models used by the Marines et. al. since the 1980s, rather than LAV IIIs which are called Strykers in the USA. These eight-wheeled amphibious armored vehicles are equipped with an improved suspension, fitted for enhanced armor protection and feature an automatic fire suppression system for crew protection. Power is provided by a Detroit Diesel 6V53T diesel engine developing 275 horsepower, coupled to an Allison MT653, 6 speed (5 forward, 1 reverse) automatic transmission. The four rear wheels drive the vehicle on a full-time basis, but eight-wheel drive is selectable.

According to General Dynamics February 2nd release, the initial $128.3 million firm-fixed-price contract for Light Armored Vehicles (LAV) and Supporting Logistics and Engineering Products is an increment of a $257 million contract, and covers 130 vehicles. The contract has a total potential value of $307 million if a $50 million option for electric turret drives is exercised.
Work will be performed in Sterling Heights, MI (7%), and London, Ontario, Canada (93%), and is expected to be complete by June 30, 2008. This was a sole source contract initiated on Aug. 10, 2005 by the Army Tank-Automotive and Armaments Command, Warren, MI (W56HZV-06-C-0255).
Feb 24/06: The turret option was exercised via a $49 million contract in late February 2006. This brings the total order to $177.3 million.
October 5/06: General Dynamics Land Systems announces that The U.S. Marine Corps has has added another $189 million for 151 more new 8×8 Light Armored Vehicles (LAV-A2) in various configurations. The announcement also includes the order for 394 electric-drive turrets (now described as $50 million) in this total, bringing the full contract to $317 million.
Work will be performed in Sterling Heights, MI, Woodbridge, VA, and London, Ontario, Canada, and is expected to be complete by December 2008.