AM General’s delivery of initial Joint Light Tactical Vehicles (JLTVs) to the U.S. Army has been delayed by six months due to challenges starting up a new production line. The delay is necessary to address issues related to sourcing directed parts, intellectual property, and part qualification. AM General won a contract valued at $8.66 billion in February 2023 to build more JLTVs, upsetting Oshkosh, the incumbent vendor.
Oshkosh protested the decision, but the Government Accountability Office denied the protest in June 2023. According to the protest, Oshkosh contended that AM General lacked experience manufacturing the JLTV and did not have existing supplier relations necessary for production. AM General was given 18 months to start production but has experienced a six-month delay.
AM General is incorporating hardware and software changes into the JLTV variant to improve its performance. The new variant will have greater fuel efficiency and corrosion resistance, as well as a more robust electrical architecture. The House Appropriations defense subcommittee’s version of the defense spending bill would reduce the Army’s fiscal 2025 budget due to the JLTV production schedule delays. Despite the delay, the JLTV program is expected to deliver savings over the life of the contract.
