Delay Announced for AM General’s First Joint Light Tactical Vehicles Delivery

Key Takeaways

AM General’s delivery of Joint Light Tactical Vehicles (JLTVs) to the U.S. Army has been delayed by six months.
The delay is attributed to challenges in launching a new production line and sourcing parts.
Despite the setback, AM General’s JLTV variant is set to incorporate enhancements, including improved fuel efficiency and durability.

Production Start Delayed for JLTVs

AM General has announced a six-month delay in delivering the Joint Light Tactical Vehicles (JLTVs) to the U.S. Army. This setback arises from complications in starting a new production line and transitioning from an incumbent vendor. According to a spokesperson from the Program Executive Office Combat Support and Combat Systems Support, issues related to sourcing parts, intellectual property, tooling, and part qualification have emerged.

While AM General is actively addressing these challenges, the adjustment to the delivery schedule is necessary to ensure quality and readiness for production. The company had won an $8.66 billion contract in February 2023 to manufacture JLTVs after a fiercely contested competition with Oshkosh, which originally secured the contract in 2015. Oshkosh filed a protest against the Army’s decision, claiming the selection of AM General involved “glaring risks,” particularly noting their lack of experience in manufacturing JLTVs and the need to establish new facilities before production could commence. The Government Accountability Office (GAO) dismissed this protest in June 2023.

Initially, AM General was expected to begin production by August 2024 but has now been pushed back to early 2025. The Army has indicated that the delay also allows for necessary adjustments to the vehicle’s baseline configuration, which had been frozen in 2022 to facilitate the recompete effort.

In response to the new timeline, AM General is working to integrate crucial configuration changes into their JLTV variant, designated as A2. These enhancements will include improved hardware and software, aimed at minimizing retrofitting requirements and boosting the vehicle’s capabilities. The updated model is expected to feature increased fuel efficiency, reduced noise, enhanced corrosion resistance, and a more robust electrical architecture. Additionally, the company plans to incorporate lessons learned from previous models to improve operational efficiency and reduce sustainment costs over the JLTV’s projected 30-year lifespan.

In light of the production delays, the House Appropriations defense subcommittee has proposed reducing the Army’s fiscal 2025 budget for the JLTV program by $119 million, down from an original allocation of $653 million. Nevertheless, the Army remains confident in the program’s ability to meet its budget and operational needs, projecting an estimated $1 billion in savings over the life of the JLTV contract.

Through these adjustments, AM General aims to not only fulfill the Army’s requirements but also deliver a technologically advanced vehicle that meets the evolving needs of military operations.

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