General Motors Co. expects a $1 billion contract with the U.S. Army for light utility vehicles based on the Chevrolet Colorado pickup trucks, CEO Mary Barra said Tuesday.
If federal funding is approved, Barra told investors that GM plans to supply the Army with 10,000 infantry squad vehicles. The infantry squad vehicle order is “expected to exceed $1 billion based on the U.S. Army’s procurement objectives,” she said.
“We’re focusing our efforts on strengthening supply chain management, improving manufacturing readiness, and expanding production capacity in ways that serve the United States and its allies well,” Barra told investors. “Over time, all of this should make GM Defense a more meaningful and diversified contributor to our earnings.”
GM Defense LLC plans to collect $700 million in revenue this year. But Barra said GM’s military-focused business expects double-digit profit margins in the next several years.
The Pentagon earlier this year spoke with Barra and Ford Motor Co. CEO Jim Farley about upping the Michigan automakers’ role in U.S. defense manufacturing.
GM Defense last month announced a partnership with top U.S. defense manufacturer Lockheed Martin with the goal of using the Detroit automaker’s expertise in supply chain, early stage digital design and commercial-scale production to quickly ramp up Lockheed manufacturing.
Other GM Defense contracts include a 10-year agreement with the U.S. State Department for the next-generation heavy-duty, armored sport utility vehicles to support the Diplomatic Security Service.
“We’re building momentum with other products and customers, including the U.S. State Department and Secret Service, as well as Canada, Qatar, Brazil, and other allies,” Barra said. “And we’re also supplying battery propulsion technology to lunar outposts, which has been awarded a $220 million NASA contract to build the next-generation lunar terrain vehicle.”
sballentine@detroitnews.com
This article originally appeared on The Detroit News: GM seeks $1 billion U.S. Army contract for Chevy pickup-based vehicles
Reporting by Summer Ballentine, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
By Summer Ballentine, The Detroit News | USA TODAY Network
