General Dynamics MRAPs: Partners and Purchases

USMC RG-31,
IEDed in Iraq
(click to view story)

General Dynamics is one of the biggest suppliers of land equipment to the US Army and Marines, alongside firms like BAE and Oshkosh. As IED land mines became an unmistakable trend in modern warfare, however, the company had nothing of its own to respond with. To fix that, they fell back on a focused partnership with BAE and the Canadian government, and created another limited partnership with newcomer Force Protection. Those kinds of partnerships can be preludes to an acquisition, and that was true in this case as well. In late 2011, the firm bought Force Protection, bringing all of its vehicles, technologies, and experience in house.

General Dynamics Land Systems is now a legitimate player in the global marketplace for blast-resistant vehicles. The long-term question involves competitiveness, as both the RG-31 (BAE) and Cougar (Force Protection) faded in the face of newer MRAP competitors. GDLS will reap maintenance and upgrade contracts for the RG-31s and Cougar in the US fleet, and consolidating accountability may strengthen their position if the Army decides to rationalize its MRAPs. That cash flow buys time; beyond, exports beckon. The Cougar family has a strong customer in Britain, where General Dynamics is supplanting BAE as a major land forces supplier, and it is used by several NATO and Middle Eastern countries. The Buffalo heavy mine-disposal vehicle has a unique niche, and offerings like the Ocelot and Jamma light patrol vehicles may yet pick up. Will it be enough?

Rapid Fire Nov. 26, 2012: German 2013 Budget | 1st FREMM

• Germany’s Bundestag approved the country’s federal budget for 2013 for a total of 302 billion euros, with around 33.3 billion euros for defense (~$43B), a slight increase above 2012. The country will spend as much next year servicing its sovereign debt as the defense ministry will receive. France is already there. Deutsche Welle | Das Parlament [in German].

• Turkey’s Prime Minister Erdogan in response to Russia objecting to the possible deployment of Patriot missile defense – within NATO’s framework – on Turkey’s border with Syria: mind your own business.

• Kimberly Kagan from the Institute for the Study of War and her husband Frederick Kagan from the American Enterprise Institute: why U.S. troops must stay in Afghanistan.